Four leading UK academics have joined forces to warn the UK Government that its commitment to resetting relations with the devolved governments cannot be met without addressing the impact of the United Kingdom Internal Market Act (UKIMA).

In a report published by the Centre for Public Policy at the University of Glasgow, the authors argue that the UKIMA has undermined the authority and status of the devolved institutions and contributed to the erosion of intergovernmental trust. They argue that reforming the legislation is a critical step in restoring that trust, as well as helping to ensure more effective policy making.

This impartial analysis of the context, content and operational impact of the UKIMA brings together leading academics from the Universities of Glasgow, Liverpool, Stirling and Queens University Belfast and offers pragmatic policy ideas that could lead to a new, more consensual way forward.

Professor Nicola McEwen said “The UK Internal Market Act was introduced despite considerable opposition from devolved institutions. It has already had a constraining impact on their policy ambitions. The UK Government should recognise and address that if it is to achieve a meaningful reset in its relationships with the devolved governments”.

Coree Brown Swan noted: “The problems and delays surrounding the deposit return scheme is illustrative of the challenges posed by the Internal Market Act and especially the process of seeking exclusions from its market access principles. A clarified and agreed process is necessary to support devolved policymaking going forward, particularly in the environmental policy space.”

Thomas Horsley added: "We recognise the challenge that the Act was designed to address. But there are many legal and intergovernmental reforms - as set out in our report - that could make it less harmful to the policymaking powers of the devolved institutions"

Lisa Claire Whitten reflected: “As with many aspects of Brexit, the UKIMA hits differently in Northern Ireland because of the Windsor Framework and the unique circumstances it was designed to address. Any reform of the legislation must take full account these, if it is to be effective and beneficial for the whole of the UK.”

The report offers a spectrum of reform options. These include amendments to the existing legislation and new processes that balance the objective of unfettered trade alongside the ability of the devolved institutions to make their own policy choices. It further warns that many of the existing problems of UKIMA were caused by the unilateral action of the UK Government and that resolving them can only be done collaboratively across the four administrations.

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First published: 3 October 2024

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