Updated Rules 'Will Benefit Trade Between UK Nations'
Following extensive feedback from businesses – including calls for greater clarity, consistency, and collaboration – the UK Government has completed a review of the Act ahead of schedule.
The updated approach enables devolved governments to shape laws which align with their own priorities. A transparent and well-managed internal market will help to minimise the risk of unnecessary trade barriers, says the UK Government.
Protecting the environment and public health will be taken into account alongside economic factors when a government proposes excluding an area from the UK Internal Market Act. In addition, if a proposed change has only a limited economic impact, this can now be agreed through a streamlined process.
This updated approach will better enable all four governments to agree shared rules across a wide range of areas including chemicals and pesticides and provide more flexibility to legislate, the UK Government said.
Minister for Trade Policy Douglas Alexander said:
'A thriving internal market is essential to the UK's economic success, so we've listened to what businesses want — and we're acting ahead of schedule.
'These reforms will keep trade flowing, reduce friction, and unlock growth across all four nations.
'We've also worked closely with devolved governments to ensure they can deliver on their priorities.'
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said:
'Trade between the nations of the UK is vital to the health of our overall economy and a key driver of growth. Businesses want to see devolved and UK governments working together to ensure there are no unnecessary barriers to the flows of goods and services between us.
'The UK Internal Market Act is key to this, setting the foundations which underpin over £100bn of trade. This new streamlined approach to rulemaking will give businesses the certainty they need so they can grow, invest, and prosper.'
The UK internal market supported over £129 billion of trade between the four nations in 2019 — equivalent to around 6% of the UK economy. For Scotland, Wales and Northern Ireland, sales to the rest of the UK make up a major share of their external sales — typically around 60%.
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