The UK Government has promised "improvements" to controversial post-Brexit legislation after acknowledging "real concerns" about how the laws have operated. Trade policy minister Douglas Alexander conceded issues with the Internal Market Act (IMA) but ruled out scrapping the legislation entirely.
The Scottish Government branded the Westminster review results "completely unacceptable", with Constitution Secretary Angus Robertson insisting the legislation "undermines" the Scottish Parliament. Holyrood has twice voted against the Act since its introduction.
Government rules out repeal
Alexander made clear that ministers have not considered scrapping the IMA, saying the UK Government has "been explicit about the need for businesses to have certainty". He said this is "why the review has not considered repeal of the Act or any of its provisions".
Instead, the UK Government has "pledged to explore improvements in the way the Act's provisions operate" after "very real concerns" were raised. The legislation was introduced by the previous Conservative government following Brexit to create a single market across the four UK nations.
Scottish deposit scheme difficulties
The Act caused significant difficulties for the Scottish Government when it attempted to introduce a deposit return scheme for empty cans and bottles ahead of the rest of the UK. This highlighted tensions between devolved powers and the new internal market rules.
Following the review, the UK Government is promising changes including the introduction of exclusions to the legislation that have been agreed by all governments within a common framework. Economic impacts, environmental protection and public health issues will be considered for exclusions.
Trade worth £129 billion
Alexander stressed the importance of having a "well-functioning UK internal market" as part of the Government's "ambition to improve economic growth for the benefit of businesses and people in all parts of our country". He highlighted that trade between the four UK nations is valued at £129 billion.
He added that this trade "is particularly important to the economies of Scotland, Wales, and Northern Ireland". The minister emphasised the economic significance of maintaining seamless internal trade arrangements.
Scottish Parliament opposition
Robertson insisted the IMA had been introduced "without the consent of any devolved government or Parliament". He said it "undermines the ability of the Scottish Parliament to use its powers to pursue devolved social and economic objectives in Scotland for the people to which it is accountable".
The Scottish minister added that the legislation "introduces radical new uncertainty as to the effect of laws passed by the Scottish Parliament and effectively provides a veto to UK ministers". He said nothing in the UK Government's response changes this "completely unacceptable" position.
Review falls short
Robertson said the review conclusion "falls well short of our stated position of repeal and replace the Internal Market Act". He noted it also fell short of "the legislative change required to mitigate the most damaging aspects of the operation of the IMA".
While welcoming the UK Government's intention "to address some of the most egregious issues with the function of the IMA exclusions process", SNP ministers "remain concerned that there is no clear vehicle to give meaningful effect to these changes". Robertson said these work against shared interests to promote growth, protect jobs and ensure seamless trade across the UK nations.
(PA) Note: This article has been edited with the help of Artificial Intelligence.
