The Welsh government is considering a legal challenge to plans for a post-Brexit UK internal market after a standoff between peers and the government over the controversial legislation ended when ministers brought forward concessions. Following an extended tussle with the House of Lords, the executive agreed changes to legislation on Tuesday evening, which it said would ensure future flexibility for the devolved administrations. The ending of parliamentary ping-pong with the Commons paves the way for the UK internal market bill to become law. But both Welsh and Scottish governments, which have previously condemned the bill as a “attack on democracy”, denied the amendments fundamentally altered the substance of the legislation, and on Wednesday the Welsh minister for European transition, Jeremy Miles, said he had formally notified the UK government of possible legal action over it. Describing it as “an outrageous attack on [the Welsh parliament’s] legislative competence”, Miles said that he had told the UK government that Wales was initiating legal action which could lead to judicial review of the new act. The Scottish government’s constitution secretary, Michael Russell, welcomed the Welsh announcement, saying that making the bill law was “an act of constitutional sabotage”. Russell said: “We stand firmly alongside the Welsh government with a shared determination to continue to challenge the bill. Consequently we can confirm that when the UK government replies to the legal letter from the Welsh government we will work with Wales to consider next legal and constitutional steps.” Later on Wednesday, the SNP MP Drew Hendry was suspended from the Commons as he protested against the approval of the legislation, shouting “this is an outrage” and picking up the mace. He was stopped by doorkeepers, and deputy speaker Dame Rosie Winterton described him as “very childish”.
The legislation is required for when the UK finally departs from the EU’s single market and customs union at the end of the transition period. However, in its original form there were concerns over what was seen as the centralisation of power in Westminster at the expense of Scotland, Wales and Northern Ireland. But following a number of defeats by the Lords and extensive debate and negotiations, the government made changes that it claims will allow the devolved administrations agreed divergence from internal market rules through so-called common frameworks. Announcing the concessions, business minister Lord Callanan said: “We are confident that these amendments provide an appropriate way to ensure that the market access principles in this bill can act to ensure certainty and a seamlessly functioning internal market. “They do this whilst allowing for a degree of agreed divergence reflecting different circumstances in particular parts of our United Kingdom.” Liberal Democrat peer Lord Fox said: “The sensitivity to the devolution settlement, which wasn’t there to start with, has been gradually piece by piece installed into this bill.” It comes after peers stripped out controversial law-breaking powers from the bill at the request of the government. Boris Johnson dropped the contentious plans after the UK and EU reached an agreement on the implementation of the Brexit divorce deal. Ministers had come under fierce criticism, including from their own side, over the move to enable ministers to override parts of the withdrawal agreement – brokered with Brussels last year. Although separate from the post-Brexit trade deal talks, which remain deadlocked, the deletion of the provisions from the bill removed another potential obstacle between the two sides.