UK Internal Market Act passed into law

Public law expert David Thorneloe of Pinsent Masons, the law firm behind Out-Law, said: "The reaction of the devolved administrations in Edinburgh and Cardiff to the passing of the Act is understandable. In order to preserve free trade across the UK, the Act restricts their legislative powers considerably. So if they wish to regulate retail sales in a way that promotes higher standards of environmental protection, for example, this can only take full effect for all goods in their territory if the UK government gives its agreement through the common frameworks process."

"However, their legal challenge is unlikely to make much headway. Reports suggest they will argue that the Scotland Act and the Government of Wales Act, as constitutional statutes, can only be modified by express amendment. Whilst that principle is important to prevent implied modifications, it is stretching things to apply it to the UK Internal Market Act, which leaves no doubt as to the effect it intends. It may be that the legal challenge is aimed more at the court of public opinion, with elections to the Senedd and the Scottish Parliament just a few months away."

The UK government has also announced that the new Office for the Internal Market (OIM) will not take up its new role of monitoring and reporting on the smooth running of the UK internal market until later in 2021, once the appointments process has been completed.

Competition law expert Alan Davis of Pinsent Masons, the law firm behind Out-Law, said: "The Act is likely to provide greater clarity to businesses trading in the UK in the years ahead, whether they are based here or overseas. If new regulatory barriers to trade within the UK are created, the Act can be used as a sword or a shield to overcome them."