Conservative 'takeover' law under expedited review, could be revised

Martin Shipton

A controversial Act of Parliament seen as a prime example of Boris Johnson's mission to roll back devolution is to be revised sooner than expected by Britain's Labor government.

The Government has decided to accelerate the review of the UK's Internal Market Act, saying it will work with the devolved governments to achieve better outcomes for UK businesses and citizens.

When the UK was a member of the EU, it had to comply with EU regulations which set standards for compliance in policy areas such as consumer goods, food safety and the environment.

After Brexit, it was initially thought that the four British countries would have the legal power to set their own standards. But Britain's Conservative government, led by Mr Johnson, decided to legislate so that common standards apply across all four UK countries – and that the lowest standard chosen by any of the countries is applicable in the whole Union.

“Common frameworks”

While the Welsh and Scottish governments recognized the need for common frameworks, they wanted individual standards to be set by agreement between the four nations, based on equal dialogue.

The law was passed despite serious reservations expressed by the Welsh and Scottish governments.

In a July 2020 letter to then-Cabinet Minister Michael Gove – who was responsible for shepherding the Internal Market Act through Parliament, Jeremy Miles, then general counsel to the Welsh Government, protested that the legislation was an attack on decentralization.

He wrote: “It is my understanding that you intend to publish a Green Paper shortly, and that Green Paper is likely to reflect a growing view within the UK Government that incorporating a principle of recognition mutual benefit reinforced in primary legislation constitutes a legal right for any property or property. A service produced in one part of the United Kingdom to the standards applicable there and placed on the market in all parts of the Union is the only way to achieve these objectives.

“Unfortunately, my officials have not been able to officially confirm this, let alone discuss joint work, as your officials no longer seem authorized to discuss this with us. Having agreed that this would be joint work, it is completely unacceptable that we now appear to be faced with a proposal solely generated by the UK Government, and it is a missed opportunity to show that we can work in collaboration.

[We] are very concerned that a mutual recognition regime without fundamental standards agreed by all UK governments would effectively result in one UK country taking action, adopting lower standards, which would force another country to choose between their legitimate political objectives and the competitiveness of their country. companies producing on its territory, at least for goods and services for which the market does not support differential quality.

The capacity for policy innovation in one part of the UK within the EU regulatory system has, in our view, been an important benefit of devolution for the whole of the UK. Charging for single-use plastic bags, the minimum unit price of alcohol, an opt-out system for organ donation are all innovative political ideas which have been tested in one country and which, after Having been shown to be effective, have been replicated in other areas of the UK. .

We need to learn from the experience of the EU single market where, of course, the legislative approach to standards and mutual recognition is based on a process that treats member states equally.

Ignored

But the arguments put forward by Mr Miles were ignored by the British government of the day, which pushed through the new law in its original form.

Today, the UK Labor Government committed to launching a review in January 2025 and completing it by summer 2025, ahead of the legal deadline for a review by December 2025.

In a written statement, Minister of State for Trade Policy, Douglas Alexander, said: “The UK internal market is vital to the UK economy because it allows people and businesses to buy and sell goods. goods, provide services and work in all four countries of the United Kingdom.

It is estimated that the internal market represents around 10% of GDP and that Scotland, Wales and Northern Ireland trade more in the UK market than outside. It is essential to protect this market while respecting the political differences that accompany decentralization.

The UK Government is committed to working with the devolved governments, and we recognize the frustration with the way the UK Internal Market Act has worked in the past, particularly the lack of clarity around how it will work.

This is why we are proposing a review of the Law six months earlier than the legal deadline. We will engage directly with devolved governments on the review, as part of a good faith process that seeks to balance the different policy choices that devolution offers us, while protecting the integrity of the internal market to ensure that we can continue to foster economic growth. jobs and a higher standard of living.

This government is implementing our Plan for Change with investments and reforms to generate growth and put more money in the pockets of citizens. The revision of this law is a key element.

Significant changes

Welcoming the announcement, Plaid Cymru Westminster leader Liz Saville Roberts said: “This review of the Internal Market Act is welcome and must lead to meaningful change.

Plaid Cymru opposed the Act from the outset, as it allows UK ministers to change the devolution settlement through secondary legislation, in defiance of the wishes of the Senedd and the people of Wales.

Respect for devolution must now have a legal basis to protect our democratic rights and ensure genuine collaboration, not the dictates of Westminster.