Deputy First Minister Kate Forbes has called on the UK Government to “restore the democratic voice of the Scottish Parliament” by repealing the Internal Market Act and providing full restoration of powers that were removed by the previous UK administration.
The Internal Market Act became law in December 2020, and was meant to work as a tool for all governments within the UK to manage instances of divergence which might cause unnecessary cost and trade barriers.
However, Scotland argues that the Act acts as a source of regulatory uncertainty for businesses and consumers.
Retailers will recall only too well how the progress of the Scottish Deposit Return Scheme, which was due to be implemented on March 1 2024, was halted in June 2023 with then Circular Economy Minister, Lorna Slater, blaming the UK Government for refusing to agree a full exclusion from the Act.
A Scottish Government Position Paper on the Internal Market Act 2020 published today said the Act should be repealed and replaced with a system built around the Common Frameworks approach and agreed by all devolved administrations and the UK Government.
Two votes in the Scottish Parliament, in October 2023 and February 2025, have called for the full restoration of the powers of the Scottish Parliament, but have been ignored.
The new paper comes as the consultation period for the UK Government’s statutory review of the Internal Market Act concludes. The UK Government specifically ruled out repealing the Act before its consultation began.
Forbes said:
“The Scottish Government’s position is clear, we must see the full restoration of the powers of the Scottish Parliament. The Internal Market Act should be repealed and the UK Government must work with the devolved governments to deliver an agreed and workable alternative.
“The Act was imposed by the previous UK Government without the consent of any devolved legislature. It remains the single greatest impediment to more effective and respectful intergovernmental relations.
“Neither the Scottish Parliament nor any of the other devolved legislatures gave their consent to the Act. It has introduced radical uncertainty as to the effect of devolved laws, effectively introducing a far-reaching and unpredictable new constraint on the powers of the Scottish Parliament.
“It also provides UK Ministers with an open-ended power effectively to nullify laws passed by a democratically elected – and accountable – legislature.
“It is deeply regrettable that the UK Government explicitly ruled out repealing the Internal Market Act before it began the review process and consultation but this new paper offers them an opportunity to work with the Scottish Government to restore the democratic voice of the Scottish Parliament.”
