Scottish Government's concern over ‘UK internal market’ after Brexit

Constitution Secretary Michael Russell has registered concern at UK Government proposals to protect a so-called ‘UK internal market’ after Brexit, that he says would undermine devolution and the democratic choices made by the Scottish Parliament.

In a letter sent this weekend to Chancellor of the Duchy of Lancaster Michael Gove, Mr Russell said two particular aspects of the proposals concern the Scottish Government:

That the UK Government plans to establish an unelected, external body that would determine whether or not any new bill in the Scottish Parliament met a new ‘market impact test’ on how the Parliament’s legislation would affect any ‘UK internal market’;

That the proposed ‘internal market’ legislation will include provisions for a new ‘mutual recognition regime’ that could require regulatory standards in one part of the UK to be automatically accepted in others, regardless of whether those standards are lower than those the Scottish Parliament might find acceptable.

"The Scottish Parliament itself is the appropriate place for any concerns about the market impact of legislation to be addressed – not an unelected panel appointed by UK Ministers," wrote Mr Russell.

"Any such proposals will be vigorously opposed by the Scottish Government and, I am sure, by others who will see these proposals for what they are, namely a deliberate attempt to place unacceptable and unnecessary constraints on the operation of the devolved settlement.

"Our initial assessment is that if such a market impact ‘test’ had been available in previous years, there would have been a significant risk that important and successful policies, which have attracted widespread public support, such as the imposition of minimum unit pricing, tuition fees policy and the ban on smoking in public places, would have been among the devolved policy measures that could well have been caught up in these new arrangements.

"Indeed they could still be challenged, depending on the powers and functions of the proposed body."

Holyrood also understood the proposed legislation would include provisions for a new mutual recognition regime that could require regulatory standards in one part of the UK to be automatically accepted in others, regardless of whether those standards are lower than those the Scottish Parliament might find acceptable.

"As you will be aware, there is widespread concern that the UK Government may compromise on regulatory standards in pursuit of trade deals, which makes the suggestion of a mutual recognition scheme a matter of great concern."

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