New changes to how the UK Internal Market Act works to benefit businesses across the four nations.

• New reforms will ensure businesses can trade smoothly across the UK’s four nations, helping them operate more efficiently and with greater certainty.
• Changes respond directly to business feedback and are a key part of the government’s Plan for Change to unlock investment and jobs, raise living standards and drive long-term growth.
• Devolved governments will have greater flexibility to set rules that reflect local priorities, while protecting the UK’s internal market, worth £129bn a year, and supporting a more collaborative approach.

Businesses trading across the UK’s four nations will benefit from clearer and more certain rules, following government changes to how the UK Internal Market Act works today [15 July].

Following extensive feedback from businesses – including calls for greater clarity, consistency, and collaboration – the UK Government has completed a review of the Act ahead of schedule, ensuring seamless trading between the nations.

The updated approach puts business needs at the forefront, while also enabling devolved governments to shape laws which align with their own priorities. A transparent and well-managed internal market will help to minimise the risk of unnecessary trade barriers, providing certainty for businesses to invest, boosting growth and raising living standards as the government delivers on its Plan for Change.

In response to businesses’ asks, the rules will now be made in a way that is more transparent, streamlined, and considers a broader evidence base, encouraging open conversations between governments and making it easier for businesses to engage with and understand how decisions are made and applied across the UK.

Protecting the environment and public health will be taken into account alongside economic factors when a government proposes excluding an area from the UK Internal Market Act. In addition, if a proposed change has only a limited economic impact, this can now be agreed through a streamlined process.

This updated approach will better enable all four governments to agree shared rules across a wide range of areas including chemicals and pesticides and provide more flexibility to legislate.

Minister for Trade Policy Douglas Alexander said:

“A thriving internal market is essential to the UK’s economic success, so we’ve listened to what businesses want — and we’re acting ahead of schedule.

“These reforms will keep trade flowing, reduce friction, and unlock growth across all four nations.

“We’ve also worked closely with devolved governments to ensure they can deliver on their priorities.”

Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, said:

“Trade between the nations of the UK is vital to the health of our overall economy and a key driver of growth. Businesses want to see devolved and UK governments working together to ensure there are no unnecessary barriers to the flows of goods and services between us.

“The UK Internal Market Act is key to this, setting the foundations which underpin over £100bn of trade. This new streamlined approach to rulemaking will give businesses the certainty they need so they can grow, invest, and prosper.”

This is just another example of how we’re making things better for business, alongside cutting regulation and reducing administrative costs to boost businesses and growth across the country for big and small firms.

The UK internal market supported over £129 billion of trade between the four nations in 2019 — equivalent to around 6% of the UK economy. For Scotland, Wales and Northern Ireland, sales to the rest of the UK make up a major share of their external sales — typically around 60%. The reforms published today aim to protect and grow that vital trade, ensuring businesses can operate with confidence and certainty.

This announcement follows a wide-ranging consultation launched in January 2025 and a statutory review announced in December 2024. The consultation received almost a hundred responses, from businesses, academics, environmental groups and the devolved governments. The improvements made to the operation of the Act are a result of those responses.

Together, these steps mark a shift toward a more business-led, cooperative approach to managing the internal market — one that supports economic growth while respecting devolved powers.

Notes

• The UK government is required by law to review elements of the UK Internal Market Act by December 2025.
• These changes do not affect provisions relating to Northern Ireland, which are tied to the Windsor Framework.
• The UK Government continues to be committed to the Common Frameworks programme and improving transparency and collaboration between the four governments of the UK, which is clearly demonstrated by the outcomes of this review.
• Further details can be found on the consultation outcome page.

source: GOV