United Kingdom Internal Market Bill

Lord Bilimoria Excerpts

2nd reading & 2nd reading (Hansard): House of Lords
Monday 19th October 2020 Lords Chamber

[Lord Bilimoria (CB) [V]]

My Lords, the UK internal market operates across England, Scotland, Wales and Northern Ireland, and it is the economic glue that binds our four nations. It is key to helping increase prosperity and raise living standards and opportunities for people and businesses across all parts of the UK. The internal market is critical for the UK to remain attractive to foreign investors and to maximise opportunities from new trade deals.

Firms across the UK have operated with the devolution settlement for more than 20 years. The United Kingdom Internal Market Bill must provide certainty that products made in one part of the UK will not face additional barriers to the market in another part of the UK and, with this, ensure that consumers in one part of the UK are not disadvantaged by having access to goods and services limited.

The UK is a highly integrated market. For the internal market to continue to operate effectively, firms across the UK have been clear that three principles must guide its implementation: first, that there should be no new barriers to trade; secondly, that there should be collaboration across the UK; and, thirdly, that there should be fair, independent and trusted adjudication.

The CBI, of which I am president, welcomes the Government’s plans to give powers to the Competition and Markets Authority to establish the Office for the Internal Market, which will also have the responsibility to report to the devolved Parliaments and Administrations. Where Northern Ireland is concerned, a free trade deal with the EU would minimise the need for strict controls on a range of goods entering Northern Ireland from the rest of the UK, bolstering the Northern Ireland protocol, maintaining the integrity of the UK internal market and respecting the all-island Irish economy.

The United Kingdom Internal Market Bill must work in lock-step with the implementation and operation of the Northern Ireland protocol. England, Scotland and Wales—that is, Great Britain—are Northern Ireland’s biggest market for external sales, being larger than all export sales combined. Over 7,000 businesses in Northern Ireland rely on the GB market, which is worth over £11 billion annually. For this to work effectively, the Bill must work in lock-step with the Northern Ireland protocol and respect the all-island economy between Northern Ireland and the Republic of Ireland. Firms in Northern Ireland have always been clear that they want to see the protocol work. In respect of trade flows from Northern Ireland to Great Britain, the protocol provides that nothing in it shall prevent unfettered access to the GB market for trade in goods.

On 16 October, the noble Earl, Lord Kinnoull, the chair of the EU Select Committee, and the noble Baroness, Lady Taylor of Bolton, the chair of the Constitution Committee, wrote in the Times:

“It is clear that the Internal Market Bill authorises violations of the UK’s obligations in international law. Setting out explicitly to break international law in this way is unprecedented and undermines the rule of law. The bill also risks destabilising devolution arrangements when it has never been more important for central and devolved governments to work together effectively.”


Today, the UK’s five most senior Anglican churchmen joined forces to denounce the Government’s new legislation, claiming that the internal market Bill could set a “disastrous precedent”.

Across the UK, firms are clear that the UK internal market is an essential aspect of how they operate their businesses. Yesterday, the CBI and 71 trade associations and professional bodies, representing 190,000 businesses and 7 million employees, called for politicians on both sides to carve a path towards a deal. The automotive, aviation, chemicals, creative industries, farming, food and pharmaceuticals sectors are united: securing a quick agreement matters greatly for jobs and livelihoods. Clarity on an ambitious deal would turbocharge business preparations, increase confidence in the UK as a place to invest and help to ease the sustainable implementation of the Northern Ireland protocol. This follows an intervention earlier this week by leading European businesses from France, Germany and Italy calling for a solution. Now is the time for historic political leadership. After four years of debate, there must be resolution; 2021 can then be a year to rebuild rather than regret.

Debate adjourned until tomorrow.