Three Senedd Committees have called on the Senedd to withhold its consent to the UK Government’s Internal Market Bill after the majority of their members expressed serious concerns about it and its impact on devolution if passed.
On 10 September the UK Government published the United Kingdom Internal Market Bill. Constitutionally, the Bill is the most significant of the Brexit process with far-reaching consequences for the whole of the United Kingdom, lasting far beyond the end of the transition period.
The Senedd is now asked to give its consent to the UK Internal Market Bill, along with the Scottish Parliament and Northern Ireland Assembly. However, refusal of consent from the devolved administrations has previously been disregarded by the UK Government, as it was with the EU (Withdrawal) Act 2018.
Three Senedd Committees have considered the Bill and have raised serious concerns about the impact it will have in Wales.
Disproportionately favours the interests of England
The External Affairs and Additional Legislation Committee has recommended that the Senedd withholds its consent to the Bill because it:
- will reduce the Senedd's powers
- will reduce the effect of many future laws passed by the Senedd, limiting the ability of the Senedd to deliver on the priorities of the people of Wales
- seeks to impose the UK Government's will on Wales, in a way that disproportionately favours the interests of England
See the External Affairs and Additional Legislation Committee report here
The
Committee is clear that with the size of the English market, compared to the
other nations of the UK, the market access arrangements in the Bill will
disproportionately favour English policy choices over those of the other
nations of the UK. The Bill also provides UK Ministers with powers over how the
UK internal market will work in the future. This favours England as UK
Ministers act for England only in devolved areas of policy, yet they will have
powers to adjust how the internal market operates that can be used without the
consent of the devolved governments.
“The view of the Senedd, Wales’ Parliament cannot be ignored on such an important constitutional issue. The Internal Market Bill could reverse two decades of work on devolution if it is passed. I urge the UK Parliament not to ignore the Senedd’s will as this Bill will reduce the power of the Senedd and reduce the effect of laws made in Wales.
“Laws made in the Senedd are passed on behalf of the people of Wales to address the needs of the people of Wales – this Bill seeks to impose the UK Government’s will on Wales, in a way that disproportionately favours the interests of England.” - David Rees MS, chair of The External Affairs and Additional Legislation Committee
Direct impact on the daily lives of Welsh citizens
The Legislation, Justice and
Constitution Committee has also raised serious concerns about the
Internal Market Bill and how it presents a risk to devolution and the stability
of the UK. It has also recommended that the Senedd does not give its consent to
the Bill.
See the Legislation, Justice and Constitution Committee report here
It believes that the Bill would:
- threaten devolution as it stands
- introduce a disincentive for the Welsh Government and Senedd to innovate in policy and law making
- undermine laws passed by the Senedd in relation to goods and services that come within the scope of the Internal Market Bill
The Committee outlines how this Bill would have a direct impact on Welsh citizens’ daily lives and how it will add unnecessary complexity for consumers and businesses.
One example of how the Bill will affect
people and businesses, is rules on animal welfare differed across UK nations.
It could mean that if Wales banned beef treated with synthetic hormones, but
the rules were different in other UK nations, then Wales’ ban would be
undermined.
“There’s no question that the Internal Market Bill threatens devolution as it stands today. It undermines the Welsh Government and the Senedd and the ability to make laws that meet the needs and aspirations of the Welsh people.
“Sometimes constitutional issues can be seen as abstract and dry but we’re clear that this UK Government Bill, if it is passed, will affect the daily lives of Welsh citizens and impact on Welsh businesses.” - Mick Antoniw MS, chair of the Legislation, Justice and Constitution Committee
Undermining Welsh Government spending power
The Finance Committee
also looked at the Internal Market Bill and raised further challenges in
relation to public spending in Wales. The majority of Committee Members believe
that the constitutional and financial implications of this Bill passing, in its
current form, would undermine devolution and set up the possibility that
funding available through the Welsh Block Grant could be reduced.
See the Finance Committee report here
The Committee is raising concerns regarding:
- the possibility of the UK Government spending in devolved areas, and the implications of this spending on the Welsh Block Grant;
- the lack of clarity on the impact of the Bill in terms of subsidy control on tax devolution and the possibility that certain tax policies in Wales may be limited or open to challenge; and
- the lack of progress made on the shape or form of the UK Shared Prosperity Fund (the money replacing EU funding) that was announced by the UK Government over three years ago
“This Bill raises serious questions about how money is spent in Wales and who spends it. If the Bill passes as it is, it gives the UK Government power to undermine the Welsh Government and spend money how it sees fit in Wales and could reduce the Welsh Block Grant.
“This totally weakens devolution and the power of the Welsh Government to spend money on behalf of its citizens.” - Llyr Gruffydd MS, chair of the Finance Committee.