Businesses trading across the UK’s four nations will benefit from clearer and more certain rules, following government changes to how the UK Internal Market Act works today [15 July].
Following extensive feedback from businesses – including calls for greater clarity, consistency, and collaboration – the UK Government has completed a review of the Act ahead of schedule, ensuring seamless trading between the nations.
The updated approach puts business needs at the forefront, while also enabling devolved governments to shape laws which align with their own priorities. A transparent and well-managed internal market will help to minimise the risk of unnecessary trade barriers, providing certainty for businesses to invest, boosting growth and raising living standards as the government delivers on its Plan for Change.
In response to businesses’ asks, the rules will now be made in a way that is more transparent, streamlined, and considers a broader evidence base, encouraging open conversations between governments and making it easier for businesses to engage with and understand how decisions are made and applied across the UK.
Protecting the environment and public health will be taken into account alongside economic factors when a government proposes excluding an area from the UK Internal Market Act. In addition, if a proposed change has only a limited economic impact, this can now be agreed through a streamlined process.
This updated approach will better enable all four governments to agree shared rules across a wide range of areas including chemicals and pesticides and provide more flexibility to legislate.
Minister for Trade Policy Douglas Alexander said:
“A thriving internal market is essential to the UK’s economic success, so we’ve listened to what businesses want — and we’re acting ahead of schedule.
“These reforms will keep trade flowing, reduce friction, and unlock growth across all four nations.
“We’ve also worked closely with devolved governments to ensure they can deliver on their priorities.”