The UK Internal Market Act – which has today (Thursday 17
December) received Royal Assent – will protect businesses, jobs
and livelihoods by ensuring there are no harmful new barriers to
trade between all parts of the UK.
This means that from 1 January businesses can continue to trade
seamlessly across all 4 parts of the UK, as they have done for
centuries, and ensures the UK’s world-leading standards for
consumers and workers are maintained, including for food and the
environment.
The law will enable the government to boost the UK’s economic
recovery, increase investment across the whole country, create
new jobs and emerge stronger from the pandemic.
Business Secretary said:
Businesses and government have been crystal clear that we must
protect the integrity of our internal market which has allowed
us to trade freely between all 4 parts of the UK for centuries,
as we seize new opportunities outside the confines of EU law.
Today’s law will ensure businesses can continue trading
unhindered from 1 January, while upholding the UK’s
world-leading standards in food, the environment and workers’
rights, protecting jobs and helping us build back better from
the pandemic.
The end of the transition period will see powers on a wide range
of issues flow from the EU to the devolved administrations in
Holyrood, Cardiff Bay and Stormont for the first time. This will
provide power over more issues than they have ever had before,
including over air quality, energy efficiency of buildings and
elements of employment law, without removing any of their current
powers.
Minister for the Constitution and Devolution, added:
By passing this act we have secured our vital UK internal
Market, underpinning the strong economic foundations that it
will provide to businesses and jobs across all 4 corners of the
UK; from Belfast to Bolsover and from Barry to Banff.
As the Minister for Constitution, I remain committed to working
closely alongside Cardiff Bay, Holyrood and Stormont in
implementing this vital act. This legislation will work
alongside new ways of engaging that we are developing with the
devolved administrations, enhancing transparency and clarity
for citizens across the UK.
As a New Year beckons, we can now move forward as a successful
and strong United Kingdom with a thriving internal market,
seizing the opportunities and meeting the challenges ahead of
us together.
The UK Internal Market Act establishes 2 principles (the Market
Access Principles) that apply to goods and services, ensuring our
shared internal market continues to operate effectively:
- the principle of mutual recognition (MR) ensures regulations from one part
of the UK are recognised across each of the others
- the principle of non-discrimination (ND) supports companies trading in the
UK, regardless of where in the UK they are based, by preventing
unreasonably discriminatory regulation
The Office for the Internal Market (OIM) will monitor the
running of the UK Internal Market. It will provide independent,
technical advice to all four administrations and their
legislatures and sit within the Competition and Markets Authority
(CMA).
The OIM will
begin operation later in 2021 following the necessary
appointments process that the Business Secretary will be able to
begin from the New Year.
Notes to editors
While the appointments process takes place for the Office for the
Internal Market, the government will continue to monitor and
protect the UK’s internal market in cooperation with the devolved
administrations.
