Case study The Internal Market Bill

MPs and peers  were at loggerheads over the UK Internal Market Bill (Developments in devolution) government plans to regulate trade between the four nations of the UK after Brexit.

MPs voted down changes to the Internal Market Bill which would have given Scotland, Wales and Northern Ireland a greater say over UK trading rules.

The government was  defeated 14 times on this bill, and by overturning the Lords' latest changes, it will continue to "ping-pong" - the term used when legislation goes back and forth between the Commons and Lords as they reject each others' changes.

The bill returned from the House of Commons with previous Lords amendments rejected but with a new set of changes proposed by the government (PDF) in their place. Members debated and agreed to these new changes. 

The United Kingdom Internal Market Bill 2019-21 finally completed its ping pong stage and received Royal Assent, following the acceptance by both Houses of Parliament of a government amendment addressing the relationship between the Bill and the common frameworks programme. 

The law brings mutual recognition and fairness to UK trade rules. This means goods allowed in one UK area can be sold everywhere in the country. The law lets regions keep their own rules. However, mutual recognition overrides these rules for goods from other UK areas. So, if it's legal to sell something in one part, it's legal everywhere. This limits how much local governments can regulate. It prioritizes free trade over other public goals.

Non-discrimination stops local rules that treat UK goods or services unfairly. This covers both obvious and hidden biases. Products or services from other UK areas should not be at a disadvantage. Some services are exempt. These include broadcasting, finance, and mail services.

Also, job skills from one UK area are valid in others. People can move without re-qualifying. Some exceptions exist. These apply when a specific approval process is needed.

Office for the Internal Market This law creates an Office for the Internal Market. It is part of the Competition and Markets Authority. The OIM watches the UK market. It reports issues. It can start investigations. The UK government or local governments can ask for investigations. Scotland, Wales, and Northern Ireland get board seats on the CMA. The OIM cannot enforce its decisions.

The Act therefore enhances UK centalisation at the expense of the devolved goverments.