How the UK Internal Market Bill will help to boost the Scottish Economy

Scotland Secretary Alister Jack’s has written to the First Minister, Nicola Sturgeon, about the UK Internal Market Bill:

11 September 2020

Dear Nicola,

I am writing to correct the false claims you have made about the UK Government’s Internal Market Bill, introduced to Parliament on Wednesday, 9 September.

As we’ve been clear, the Bill will protect and strengthen our internal market which is so vital to Scotland’s economy with 60 per cent of our exports, worth over £50 billion per year, going to other parts of the United Kingdom.

It will also create new opportunities for the UK Government, working with the Scottish Government, local authorities and other partners, to invest in Scotland.

That’s why I have described the Bill as a win-win for Scotland.

It is good for business, jobs and consumers. It will boost our economy and help us rebuild from the devastating effects of the coronavirus pandemic.

The Bill has now begun its passage through Parliament and will be debated at length in the weeks ahead.

In accordance with the Sewel Convention, the UK Government will seek a Legislative Consent Motion so the Scottish Parliament, also, will have the opportunity to consider our proposals.

Before this takes place, I wish to correct a series of assertions you have made about the Bill.

1. You have said the Bill will lead to a ‘race to the bottom’ in terms of food standards and environmental protections. That is emphatically not the case.

The UK is a world leader in food and environmental standards and that will not change.

Also, as you know, the UK Government and all devolved administrations have agreed a common framework on food and feed safety and hygiene law which clearly sets out the ‘rules and regulations related to the production and distribution of food and feed’. Guaranteeing our shared commitment to high standards across the UK.

The UK Government is proud of our record and keenly aware of the premium our high standards place on UK goods in overseas markets.

2. Similarly, your speculation that Scotland could be ‘forced to accept chlorinated chicken’ is unfounded.

As we have previously reminded Scottish Government ministers during discussions about the Bill, chlorine washed chicken is illegal in the UK. The UK Government has been clear we will not sign a trade deal that would compromise our high standards of food safety, animal welfare and environmental protection.

Of course, we recognise and welcome the Scottish Government’s commitment to high standards in these areas. Our shared view should be the basis of an agreed UK approach to high standards.

3. You also claimed the new spending power contained in the Bill could divert funding from schools and hospitals in Scotland. This is not the case.

Education and health are – and will continue to be – devolved to the Scottish Parliament and decisions on funding in those areas are for your Government to take. Scotland’s block grant is at a record level and the Barnett Formula will continue to operate as set out in the Statement on Funding Policy.

The UK Government’s spending power set out in the Bill will complement existing Scottish Government spending powers. This can only be a benefit to the people and businesses of Scotland.

They will enable us to spend money previously controlled by the EU to make strategic investments of UK-wide importance.

This is good news for the communities we serve and I am confident these new opportunities will be warmly welcomed by the people of Scotland.

4. You claim the Bill, had it been in place at the time, would have prohibited the Scottish Parliament from legislating to introduce a minimum price for alcohol. Again – as we have already made clear to Scottish Government ministers – this is incorrect.

Under the terms of the Bill, the Scottish Parliament would be able to introduce a minimum alcohol price provided, of course, it was not applied only to alcoholic drinks produced in certain parts of the UK.

5. You claim the Bill is ‘a naked power grab’ and ‘an attack on the powers of devolution’. It is not.

The Scottish Parliament will lose none of its existing powers. Indeed, as powers return from Brussels when we leave the Transition Period at the end of the year, scores of new responsibilities will flow to Holyrood.

It should be noted that your Government’s ambition to take Scotland out of the UK and into the EU would remove these powers from the Scottish Parliament. That is the only threat to Holyrood’s powers.

6. Finally, you claim the Bill would ‘break’ or ‘cripple’ devolution.

I’m afraid your Government is never less convincing than when it purports to champion a system it unashamedly wishes to overthrow.

Independence would destroy devolution, ending our system of two governments which was backed overwhelmingly by the people of Scotland in the referendums of 1997 and 2014.

The UK Government emphatically supports devolution and our Bill will strengthen the Scottish Parliament and create new opportunities for Scotland.

Your colourful description of the Internal Market Bill as ‘an abomination’ is deeply regrettable.

In my view, it would be abominable for the people of Scotland to be misinformed about a Bill which has such potential to improve lives and strengthen our country.

THE RT HON. ALISTER JACK MP SECRETARY OF STATE FOR SCOTLAND

Economy Secretary Fiona Hyslop has since written to the UK Government voicing concern at its plans for a post-Brexit internal market, saying it represents a threat to the Scottish economy.

Ms Hyslop said the proposed Internal Markets Bill will jeopardise Scotland’s food and drink sector, which has a world-renowned reputation for high standards and high quality products.

She also highlighted how the Bill will undermine the good progress made on common frameworks, the preferred means of managing policy difference across the UK when EU rules no longer apply. 

Last month the Scottish Parliament considered the original proposals set out in the UK Government White Paper and voted overwhelmingly – by 92 votes to 31 – to reject them.

In her letter to Alok Sharma, Secretary of State for Business, Energy and Industrial Strategy, Ms Hyslop said:

“Coronavirus (COVID-19) is clearly currently the biggest challenge for business and the economy. Unnecessary legislation, which undermines devolution, on top of an entirely unnecessary end to the Brexit transition period will do nothing to protect or promote trade across the UK and beyond.

“If this legislation were already in place, Scotland would not have been able to lead the way on the ban on smoking in public, on introducing minimum unit pricing for alcohol, having rules on the marketing of raw milk consistent with the nature of the dairy sector in Scotland, or taking forward bans on the sale of plastic-stemmed cotton buds and microbeads in cosmetics.

“A linked concern is the prospect of the UK entering into future international trade agreements which might result in lower standard products being accepted into UK markets. Scotland’s world-leading food and drink sector, for example, is built on a reputation for the highest quality produce and nothing should be done to put that at risk.”

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davepickering

Edinburgh reporter and photographer

3 thoughts on “How the UK Internal Market Bill will help to boost the Scottish Economy”

    1. I ran a piece on this earlier this week with included a statement by Scottish Government minister Michael Russell. Since the Scottish Secretary’s letter to the First Minister yesterday, Scotland’s economy secretary has written to Westminster Business Secretary Alok Sharma this morning. I have now added this to this morning’s post. You can be sure we have not heard the last of this!

  1. THAT HIS JOB DONE (“I’m all right ‘Jack’ “). Your Job, Journalist, is to provide a Balanced Report. Retract Jack’s Party Political broadcast which demeans NEN as a worthy journal.

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