(Title Image: Senedd Cymru)
- Constitutional Affairs, Finance and External Affairs committee all recommend or suggest that the Senedd withholds consent from the controversial UK Internal Market Bill.
- All committees conclude that the Senedd’s financial and legislative powers will be restricted.
- Welsh Government open to an internal market but prefers negotiated common frameworks (as originally envisaged after Brexit).
Ahead of an imminent vote on the Legislative Consent Motion for the UK Government’s controversial Internal Market Bill – now set to take place next Tuesday (8th December 2020) – three Senedd committees published their verdict and recommendations last week.
Constitutional Affairs & Justice Committee (pdf)
The Committee listed several examples where Wales’ devolved powers could be limited under the Internal Market Bill including:
- being unable to ban the production and sale of hormone-treated beef in Wales (animal welfare and public health are devolved).
- being unable to introduce tighter restrictions on single-use plastics (Wales would be forced to adopt the lowest UK standards under the Bill under non-discrimination clauses).
- undermining Welsh laws on the licensing and regulation of private landlords (landlords located elsewhere in the UK would be able to operate in Wales outside of Welsh law under the Bill).
The Counsel General described the breach of international law concerning Northern Ireland as “utterly repugnant”. That alone, he said, would justify withholding consent.
Somewhat optimistically, the Counsel General thought the UK Government would “struggle to justify” continuing with the Bill if the devolved administrations withheld consent.
Again rather optimistically, the Committee concluded the circumstances weren’t exceptional enough for the UK Government to ignore the Sewel Convention – the principle that the devolved legislatures need to consent to UK legislation in devolved policy areas.
Finance Committee (pdf)
A majority of committee members concluded that the Bill undermines devolution and has the potential to see reductions to the Welsh block grant.
The Bill gives the UK Government powers to fund activities in devolved policy areas which, by itself, undermines devolution by opening the door for decisions made democratically by the Senedd or Welsh Government to be overturned.
The UK Government argues that this is to pave the way for the UK Shared Prosperity Fund – which will replace EU structural funding. However, the power is so broad it could lead, for example, to the UK Government funding grammar schools, academies and free schools in Wales.
There have been no assurances as to whether such spending would result in a cut to Wales’ block grant – which the Finance Minister described as “sinister goings-on”.
The Welsh Government contends that state aid rules should be devolved, but the Bill adds state aid to the list of reserved matters in the Government of Wales Act 2006.
External Affairs Committee (pdf)
The committee came to its conclusion that consent should be withheld based on several core reasons, namely:
The Bill is unnecessary and attempts to fix a problem that isn’t there – There’s little opposition to the principle of a single UK internal market. However, this market is already regulated through agreed and proposed pan-UK frameworks underpinned by the EU Withdrawal Act 2018 and, in the Committee’s view, doesn’t require specific legislation.
In the Committee’s view, it will reduce the Senedd’s powers and reduce the impact of future laws passed by the Senedd in devolved policy areas – No new powers are being transferred to the devolved nations under the Bill. The Internal Market Bill will also prevent any “significant policy divergence” which affects the UK market, hamstringing the Senedd’s ability to make laws which set higher standards than the UK minimum.
The Internal Market Bill seeks to impose the will of the UK Government on Wales in a manner which would disproportionately favour England – The size of the English market within the UK means all future standards within the “UK” internal market will be determined by England. Wales, Scotland and Northern Ireland will be unable to amend the Bill in the future, but the UK Government – acting on behalf of England – will be able to. There’s no formal role for the devolved nations in governance and oversight either; it’ll all be done by the UK/English Government.
