Tag: EU law

Fundamental questions about Brexit’s impact on Devolution

There are fundamental questions about how devolution works outside the EU which must be addressed. This warning comes from a new report by Holyrood’s Constitution, Europe, External Affairs and Culture Committee.

In its report, the Committee highlights substantive differences between the views of the UK Government and the Scottish and Welsh Governments regarding future alignment with EU law.

The Committee’s report makes clear that these differences raise fundamental constitutional questions including the extent the UK can accommodate four different regulatory environments within a cohesive internal market, as well as whether the existing institutional mechanisms are sufficient to resolve differences between the four governments within the UK when there are fundamental disagreements regarding alignment with EU law.

The Committee is concerned with how devolution needs to evolve to address these questions.  This includes the operation of the Sewel Convention which the Committee agrees is under strain following Brexit and the extent of UK Ministers’ new delegated powers in devolved areas which the Committee agrees amounts to a significant constitutional change.

The report states there is a need for a much wider public debate about where power lies within the devolution settlement following the UK’s departure from the EU.  This needs to address the extent of regulatory autonomy within the UK internal market.

Committee Convener, Clare Adamson MSP said: ““As a Committee, we have already set out our concerns about the risks for devolved Parliaments as a result of Brexit. But the questions raised in our report make it clear that there are fundamental issues which must be addressed urgently.

“Without wider debate, both in this Parliament and elsewhere, these fundamental questions will go unresolved, and the way devolution works outside of the EU will remain uncertain.”

Deputy Convener, Donald Cameron MSP said: “Our committee is agreed that there is a need for a wide debate on the very serious and complex issues raised in our report.

“However, this debate is not simply one for Governments and Parliaments, but businesses, civic society and the wider public as well in order that we can fully explore the current issues facing not just the Scottish Parliament, but the wider devolution process.”

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MSPs urge greater transparency on EU alignment

Holyrood’s Constitution, Europe, External Affairs and Culture Committee is calling for the Scottish Parliament and Scottish Government to develop a framework to facilitate appropriate and proportionate scrutiny on decisions to align with EU law.

The Committee has been considering Scottish Ministers’ use of powers given to them by the Continuity Act  to ‘keep pace’ with EU law by using regulation-making powers. MSPs on the Committee have been looking at the first draft annual report and policy statement, which the Scottish Government are required to publish under the legislation.

The MSPs have concluded that:

• It is essential that the Scottish Parliament and civic society in Scotland can meaningfully engage with and influence Scottish Government decisions on whether or not to align with EU law;

• the draft documents currently provide limited information to aid scrutiny of the Scottish Government’s commitment to continued EU alignment and consideration should be given to providing a fuller picture.

• There is an urgent need for Scottish Parliament and Scottish Government Officials to work together to develop proposals to ensure effective scrutiny of the commitment to align with EU law.

Committee Convener, Clare Adamson MSP, said: “Transparency is key given that aligning with EU law is a policy commitment of the Scottish Government.

“We understand that decisions on whether to align or not will be influenced by a range of factors – which may include the impact of divergence from the rest of the UK, the UK Internal Market Act and how common frameworks are operating, as well as the policies themselves.

“The Parliament and Scottish Government must now develop proposals to deliver on the Government’s commitment to a decision-making framework which will facilitate an appropriate and proportionate level of scrutiny of Ministerial decisions to align with EU law.

“This should include consideration of how to ensure the involvement of businesses, local government, civic society and other stakeholders in an open and transparent way.”

UK Government announces plan to scrap EU motor insurance law

Controversial EU Vnuk motor insurance law may be removed from British law

  • government plans to bin the EU’s ‘Vnuk’ motor insurance law – which requires insurance even on private land for a wider range of ‘vehicles’, including ride-on lawnmowers and mobility scooters
  • move will ensure every British driver is spared an estimated £50 annual increase in insurance premiums
  • decision to scrap Vnuk from British law would reiterate benefits of leaving the EU, as we take back control of our own laws and regulations

British drivers will avoid an estimated £50 a year increase in motor insurance costs as the government confirms it plans to do away with the controversial EU ‘Vnuk’ law, Transport Secretary Grant Shapps announced today (21 February 2021).

The Vnuk law requires a wider range of vehicles than those such as cars and motorbikes to be insured, including ones previously not requiring insurance, such as golf buggies, mobility scooters and quad bikes.

The law also extends to vehicles on private land, meaning people with a ride-on lawnmower at home would require insurance where it would have previously not been needed.

Had the EU law been implemented in Great Britain, it would have meant the insurance industry would have been liable for almost £2 billion in extra overall costs. These costs would likely have been passed onto their customers – British road-users.

Now we have left the EU, the measures no longer need to be implemented, helping road-users across the country steer clear of increased premiums – a clear win for motorists in Britain.

Read the Government Actuary Department research about the Vnuk decision and its effect on domestic motor insurance.

Bypassing Vnuk will also protect the existence of the UK’s motorsports industry.

The EU rules would have meant any motorsports collision involving vehicles from go-karting to F1 would have been treated as regular road traffic incidents requiring insurance. This could have decimated the industry due to the additional insurance costs of roughly £458 million every single year.

Scrapping the rules will save the industry from potential collapse and secure hundreds of thousands of jobs in the sector in the process.

Transport Secretary Grant Shapps said: “We have always disagreed with this over-the-top law that would only do one thing – hit the pockets of hard-working people up and down the country with an unnecessary hike in their car insurance. I am delighted to announce that we no longer need to implement it.

“Scrapping this rule would save the country billions of pounds and is part of a new and prosperous future for the UK outside the EU – a future in which we set our own rules and regulations.”

As well as the likely financial burden on British road-users, the Vnuk rules are considered unnecessary as there are already insurance packages available to Britons that cover certain risks on private land.

The UK officially left the EU on 31 January 2020, with the formal transition period coming to an end on 31 December 2020, after the ratification of the UK-EU Trade and Cooperation Agreement.