The UK Government will fast track a review of the UK Internal
Market Act, and work with devolved governments to deliver better
outcomes for businesses and citizens across the United Kingdom.
In a written ministerial statement published today, the
government pledges to launch a review in January 2025 and
complete this by summer 2025 – ahead of the legal deadline for a
review by December 2025.
The value of the UK internal market has been estimated at around
10% of the UK's total GDP, and Scotland, Wales and Northern
Ireland trade more with the rest of the UK than with the rest of
the world.
The UK Government will engage directly with a wide range of
stakeholders, including the devolved governments as part of the
review, aiming to improve transparency of the UKIM process and
ensuring policy divergence can be aligned with better outcomes
for businesses and consumers, and delivering economic growth to
every part of the UK.
Minister of State for Trade Policy 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.
“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.
“This Government is delivering our Plan for Change with
investment and reform to deliver growth and put more money in
people's pockets. Reviewing this Act is a key part of that.”
