UK ministers to bring forward review of contentious post-Brexit trade law

The UK Government intends to fast track a review of the Internal Market Act with the aim of completing it by summer next year.

The post-Brexit legislation has been a point of contention between the Scottish and UK Governments, with ministers in Edinburgh arguing it undermines devolution.

Replacing EU trade rules, the IMA is designed to prevent the creation of trade barriers for goods and services within the UK.

MSPs have said this creates tension with the autonomy of the devolved administrations in Edinburgh, Belfast and Cardiff.

The legal deadline for a review of the legislation is due in December 2025, but UK ministers now wish to complete this earlier, including the devolved administration in their discussions.

Trade Policy Minister Douglas Alexander said: “The UK internal market is essential for the UK economy, allowing people and business to buy and sell goods, provide services and work across the four nations of the UK.

“The internal market has been estimated to be worth around 10% of GDP and Scotland, Wales and Northern Ireland all trade more within the UK market than outside it.

“It’s crucial we protect that market whilst respecting policy divergence which comes with devolution.”

He added: “This UK Government is committed to engaging with the devolved Governments, and we recognise frustration with how the UK Internal Market Act has operated in the past, particularly the lack of clarity in terms of how it operates.

“That is why we are bringing forward a review of the Act six months earlier that the statutory deadline.

“We will engage directly with the devolved Governments as part of the review in a good faith process that seeks to balance the different policy choices that devolution affords us, while protecting the integrity of the internal market to ensure we can continue to drive for economic growth, jobs and higher living standards.”

Deputy First Minister and Economy Secretary Kate Forbes stated: “We note the UK Government’s intention to review the Internal Market Act.

“The Act is a major constraint on devolved competence, which was imposed on Scotland against the wishes of the Scottish Parliament.

“The Scottish Government is clear that the powers of the Scottish Parliament must be fully restored.”