May contain errors — check source documents for definitive information.
The United Kingdom Internal Market Act 2020 sets out how goods and services can move freely across the UK after Brexit, while giving ministers powers to regulate cross-border service markets with public-interest safeguards. It also creates a governance framework involving devolved administrations, the CMA, and a process for managing divergence from harmonised rules. The bill includes targeted exemptions for certain professions and adds safeguards to reflect devolution and public-interest considerations before regulations can take effect.
Key Points
- The scope of market access rules is narrowed: the government sought to limit the reach of the internal market principles mainly to incoming service providers and specific types of requirements, with tests for ‘relevant disadvantage’ and ‘adverse market effect’ defined and distinguished from broader restrictions.
- Exclusions for professional services: patent attorneys and trade mark attorneys were added to the list of professions exempt from the market-access restrictions, signalling a more selective approach to regulating professional services.
- Public-interest derogations: the bill was amended to create space for restrictions on market access where a legitimate public-interest aim is pursued, subject to safeguards, rather than applying a blanket obligation to remove all barriers.
- Devolution safeguards and consent: amendments introduced or enhanced requirements for consulting devolved administrations before certain regulations, and to secure consent from Scots, Welsh, and Northern Irish administrations for specific regulatory steps. There were also moves to embed common frameworks in the process for divergence from harmonised rules.
- Governance and accountability: amendments established or strengthened arrangements around the CMA Board, including representation from devolved administrations, and introduced a ‘common frameworks’ process to manage how UK-wide rules interact with devolved powers.
- Cross-party debate on balance of power: the amendments reflect tensions between preserving a robust internal market and protecting devolved competencies, with government amendments aimed at narrowing the regime and opposition amendments pushing for stronger devolved safeguards and public-interest protections.
Progress
The bill completed all parliamentary stages and received Royal Assent, becoming law after extensive scrutiny and numerous amendments in both Houses.
Voting
Across its passage, the government largely steered the bill through, with Conservative MPs voting in favour and opposition parties (Labour, Liberal Democrats, SNP, etc.) voting against many provisions. In the Lords, crossbench and Labour peers secured a number of amendments—especially on devolution safeguards and public-interest derogations—that were then incorporated into the bill before final passage.
Who is affected?
Businesses trading within the UK internal marketService providers, including those coming into the UK from abroadProfessional bodies and professionals (notably patent and trade mark attorneys)Devolved administrations (Scotland, Wales, Northern Ireland)Regulators and the CMAConsumers relying on cross-border market access
