Brexit: Welsh Government threatens legal action over UK trade law
- Published
The Internal Market Act aims to set the rules of trade within the UK after Brexit
The Welsh Government has threatened legal action over a new law aiming to set the rules of trade between different UK nations after Brexit.
The devolved government in Cardiff is concerned the Internal Market Act could constrain the ability of the Senedd to make law.
MPs have agreed changes to the law made by the Lords - it received Royal Assent and became law on Thursday.
The UK government said it was "disappointed" with the statement.
The act sets out that - even if different UK nations set different standards - goods and services have to be allowed in all parts of the UK.
Boris Johnson's government said it wanted to avoid different regulations emerging in the UK's four nations after the Brexit transition period ends on 31 December.
After that date, many powers over standards are set to return from Brussels to the Scottish, Welsh and Northern Irish administrations.
But there are concerns quality controls could be dragged down to a lowest common denominator and the ability of the Welsh Parliament to set its own legislation would be hindered.
Following a number of defeats by the House of Lords, the government made changes that will allow the devolved administrations agreed divergence from internal market rules through so-called common frameworks.
However, the Welsh Government said the act would still allow UK ministers to "undermine the right of the Senedd to make laws and implement policies which reflect the priorities of the people who elect them".
The legislation would give the UK government powers to spend cash on infrastructure in Wales
The law will also allow UK government ministers to spend money in areas of policy that are otherwise run by the devolved administrations.
Counsel general Jeremy Miles said powers in the bill could open the Government of Wales Act 2006 - part of the legislation underpinning devolution - to "very wide substantive future amendment, and the powers of the Senedd and Welsh Government to serious diminution, at the hands of the UK government".
"The provisions in the [law] are also so wide and deep in operation that they risk constraining the legislative space for the Senedd in areas which are currently devolved."
Mr Miles said Welsh ministers had "formally notified the UK government that should the UK Parliament enact the bill in its present form, I intend to take immediate action to seek a declaration from the administrative court that the ambit of constitutional legislation cannot lawfully be cut down in this way and that the ensuing act cannot be interpreted so as to have that effect".
The Welsh Parliament voted to reject consent for the law earlier in December.
A UK government spokesman said: "We are disappointed at the Welsh administration's statement, particularly given the productive working relationship we have enjoyed with their ministers and officials during the passage of the bill.
"This vital bill will protect Welsh jobs, businesses and livelihoods."
The Scottish Government said it fully supported the Welsh Government "as an important test of the principles and legality of the bill".
"We stand firmly alongside the Welsh Government with a shared determination to continue to challenge the bill," Scottish constitution secretary Michael Russell said.