United Kingdom Internal Market Act 2020
UK law relating to internal trade / From Wikipedia, the free encyclopedia
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The United Kingdom Internal Market Act 2020 (c. 27) is an act of the Parliament of the United Kingdom passed in December 2020. Its purpose is to prevent internal trade barriers within the UK, and to restrict the legislative powers of the devolved administrations in economic matters.[12] It is one of several pieces of legislation concerning trade that were passed following the European Union membership referendum, as after Brexit the UK is no longer directly subject to EU law.
Act of Parliament | |
Long title | An Act to make provision in connection with the internal market for goods and services in the United Kingdom (including provision about the recognition of professional and other qualifications); to make provision in connection with provisions of the Northern Ireland Protocol relating to trade and state aid; to authorise the provision of financial assistance by Ministers of the Crown in connection with economic development, infrastructure, culture, sport and educational or training activities and exchanges; to make regulation of the provision of distortive or harmful subsidies a reserved or excepted matter; and for connected purposes. |
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Citation | 2020 c. 27 |
Introduced by | Alok Sharma, Secretary of State for Business, Energy and Industrial Strategy (Commons) Martin Callanan, Parliamentary Under-Secretary of State for Climate Change and Corporate Responsibility (Lords) |
Territorial extent | |
Dates | |
Royal assent | 17 December 2020 |
Commencement | 31 December 2020 23:00 |
Other legislation | |
Amends | |
Status: Current legislation | |
History of passage through Parliament | |
Text of statute as originally enacted |
The UK Government has stated that the legislation's intended purpose is to guarantee the continued seamless functioning of the UK's internal market, and to enshrine in law principles to ensure regulations from one part of the UK are recognised across the country.[13] The Scottish Government has stated that the legislation is intended to introduce wide ranging constraints on devolved competence, and observed that it also authorises financial assistance by UK government ministers on devolved matters, and reserves devolved powers relating to subsidy control.[14] They said that the intent of the bill was a "power grab", and in a report published in March 2021 said that the act is "radically undermining the powers and democratic accountability of the Scottish Parliament."[15][16]
While the bill was before parliament, the Conservative MP and Minister for the Cabinet Office, Michael Gove, described the bill as a measure to preserve the territorial integrity of the United Kingdom.[17] The devolved administrations criticised the bill for its re-centralisation of control over commerce, reversing the devolution of power in the United Kingdom.[18][19]
The bill was rejected a number of times by the House of Lords. Eventually, the UK government made changes to make it more flexible, and also withdrew some provisions in Part 5 (relating to the Northern Ireland Protocol to the Brexit withdrawal agreement) that had attracted controversy because of their impact on the rule of law. The act was given Royal assent on 17 December 2020, some two weeks before the United Kingdom formally left the European single market.[20]
The Welsh Government sought a judicial review of the legislation. In a hearing in April 2021, two High Court judges refused permission for a full hearing, ruling that the claim was premature in the absence of specific circumstances giving rise to the arguments raised by the Welsh Government.[21]