continued    

• “relevant international or domestic law” includes—

  (a)

  any provision of the Northern Ireland Protocol;

  (b)

  any other provision of the EU withdrawal agreement;

  (c)

  10any other EU law or international law;

  (d)

  any provision of the European Communities Act 1972;

  (e)

  any provision of the European Union (Withdrawal) Act 2018;

  (f)

  any retained EU law or relevant separation agreement law;

  (g)

  any other legislation, convention or rule of international or
  15domestic law whatsoever, including any order, judgment or
  decision of the European Court or of any other court or tribunal,

  but does not include the Convention rights within the meaning of the
  Human Rights Act 1998 (see section 1(1) of that Act);

• “relevant separation agreement law” has the meaning given by section
  207C(3) of the European Union (Withdrawal) Act 2018.

Part 6 Financial assistance powers

48 Power to provide financial assistance for economic development etc

(1)A Minister of the Crown may, out of money provided by Parliament, provide
25financial assistance to any person for, or in connection with, any of the
following purposes—

(a)promoting economic development in the United Kingdom or any area
of the United Kingdom;

(b)providing infrastructure at places in the United Kingdom (including
30infrastructure in connection with any of the other purposes mentioned
in this section);

(c)supporting cultural activities, projects and events that the Minister
considers directly or indirectly benefit the United Kingdom or
particular areas of the United Kingdom;

(d)35supporting activities, projects and events relating to sport that the
Minister considers directly or indirectly benefit the United Kingdom or
particular areas of the United Kingdom;

(e)supporting international educational and training activities and
exchanges;

(f)40supporting educational and training activities and exchanges within
the United Kingdom.

(2)In this section—

• “infrastructure” includes—

  (a)

  water, electricity, gas, telecommunications, sewerage or other
  45services (for example, the provision of heat),

  (b)

  railway facilities (including rolling stock), roads or other
  transport facilities,

  United Kingdom Internal Market BillPage 41

  (c)

  health, educational, cultural or sports facilities,

  (d)

  court or prison facilities, and

  (e)

  housing;

• “promoting”, in relation to economic development, includes taking any
  5measure likely to contribute directly or indirectly to economic
  development (which might include, for example, measures relating to
  social inclusion);

• “providing”, in relation to infrastructure, includes acquiring, designing,
  constructing, converting, improving, operating and repairing
  10infrastructure;

• “sport” includes any physical recreation.

49 Financial assistance: supplementary

(1)Financial assistance under section 48—

(a)may be provided by way of grants, loans, guarantees or indemnities or
15in any other form;

(b)may be provided subject to conditions (which may include conditions
about repayment with or without interest or other return);

(c)may be provided under a contract;

(d)may be provided to an investment fund for onward investment or
20administrative costs relating to onward investment.

(2)The power to provide financial assistance under section 48 is in addition to
(and does not limit or replace) any other power of a Minister of the Crown to
provide financial assistance.

Part 7 25Final provisions

50 Regulation of distortive or harmful subsidies

(1)In Part 2 of Schedule 5 to the Scotland Act 1998 (specific reservations), under
Head C (trade and industry), at the end insert—

“C16. Distortive or harmful subsidies

30Regulation of the provision of subsidies which are or may be distortive
or harmful by a public authority to persons supplying goods or services
in the course of a business.

Interpretation

• “Public authority” means a person who exercises functions of a
  35public nature.

• “Subsidy” includes assistance provided to a person directly or
  indirectly by way of income or price support, grant, loan,
  guarantee, indemnity, the provision of goods or services and
  any other kind of assistance, whether financial or otherwise and
  40whether actual or contingent.

• A subsidy is provided “by a public authority” if it is provided by
  that authority directly or indirectly.

• A subsidy is “distortive or harmful” if it distorts competition
  between, or otherwise causes harm or injury to, persons

• supplying goods or services in the course of a business, whether
  or not those persons are established in the United Kingdom.”

(2)In Schedule 2 to the Northern Ireland Act 1998 (excepted matters), after
paragraph 16 insert—

“16A5Regulation of the provision of subsidies which are or may be
distortive or harmful by a public authority to persons supplying
goods or services in the course of a business.

In this paragraph—

• “Public authority” means a person who exercises functions of a
  10public nature.

• “Subsidy” includes assistance provided to a person directly or
  indirectly by way of income or price support, grant, loan,
  guarantee, indemnity, the provision of goods or services and
  any other kind of assistance, whether financial or otherwise
  15and whether actual or contingent.

• A subsidy is provided “by a public authority” if it is provided
  by that authority directly or indirectly.

• A subsidy is “distortive or harmful” if it distorts competition
  between, or otherwise causes harm or injury to, persons
  20supplying goods or services in the course of a business,
  whether or not those persons are established in the United
  Kingdom.”

(3)In Part 2 of Schedule 7A to the Government of Wales Act 2006 (specific
reservations), under Head C (trade and industry), at the end insert—

“C18. 25Distortive or harmful subsidies

Regulation of the provision of subsidies which are or may be distortive
or harmful by a public authority to persons supplying goods or services
in the course of a business.

Interpretation

• 30“Public authority” means a person who exercises functions of a
  public nature.

• “Subsidy” includes assistance provided to a person directly or
  indirectly by way of income or price support, grant, loan,
  guarantee, indemnity, the provision of goods or services and
  35any other kind of assistance, whether financial or otherwise and
  whether actual or contingent.

• A subsidy is provided “by a public authority” if it is provided by
  that authority directly or indirectly.

• A subsidy is “distortive or harmful” if it distorts competition
  40between, or otherwise causes harm or injury to, persons
  supplying goods or services in the course of a business, whether
  or not those persons are established in the United Kingdom.”

51 Protection of Act against modification

(1)In Schedule 4 to the Scotland Act 1998 (enactments etc. protected from
45modification), after paragraph (1)(2)(g) insert “, and

“(h)the United Kingdom Internal Market Act 2020”

(2)In paragraph 5(1) of Schedule 7B to the Government of Wales Act 2006
(protected enactments), in the table after the entry for the European Union
(Withdrawal) Act 2018 insert—

(3)5In section 7 of the Northern Ireland Act 1998 (entrenched enactments)—

(a)omit the “and” at the end of paragraph (d), and

(b)after paragraph (e) insert “, and

“(f)the United Kingdom Internal Market Act 2020.”

(4)No power to make subordinate legislation contained in primary legislation
10passed or made before this section comes into force may be exercised so as to
amend, repeal or otherwise modify the operation of this Act.

52 Further provision in connection with the Northern Ireland Protocol

(1)The following provisions cease to have effect when Articles 5 to 10 of the
Northern Ireland Protocol cease to apply—

(a)15section 11 and Part 5, and

(b)section 8C(5A) of the European Union (Withdrawal) Act 2018 (as
inserted by subsection (3)).

(2)Nothing in this Act except the amendment made by subsection (3) (including,
in particular, section 51(4)) limits—

(a)20the power to make provision under section 8C of the European Union
(Withdrawal) Act 2018 (regulations in connection with the Protocol)
(including as that power may be used to modify this Act), or

(b)the effect of any regulations under that section.

(3)In section 8C of the European Union (Withdrawal) Act 2018, after subsection
25(5) insert—

“(5A)Regulations under subsection (1) may not amend, repeal or otherwise
modify the operation of section 43 of the United Kingdom Internal
Market Act 2020 (“the 2020 Act”), except by making—

(a)provision of the sort that is contemplated by section 43(2) of the
302020 Act (permitted checks);

(b)provision under subsection (6);

(c)provision of the sort described in paragraph 21(b) of Schedule 7
(supplementary and transitional provision etc) in connection
with—

(i)35provision within either of the preceding paragraphs;

(ii)Articles 5 to 10 of the Northern Ireland Protocol ceasing
to apply (and the resulting operation of section 52(1) of
the 2020 Act).”

53 Regulations: general

(1)40Any power to make regulations under this Act is to exercisable by statutory
instrument.

(2)Any power to make regulations under this Act includes power—

(a)to amend, repeal or otherwise modify legislation;

(b)to make different provision for different purposes;

(c)to make supplementary, incidental, consequential, transitional,
transitory or saving provision (including provision made in reliance on
5paragraph (a)).

(3)This section does not apply to regulations under section 56(3).

54 Regulations: references to parliamentary procedures

(1)Where regulations under this Act are subject to affirmative resolution
procedure, the regulations may not be made unless a draft of the statutory
10instrument containing them has been laid before and approved by a resolution
of each House of Parliament.

(2)Where regulations under this Act are subject to made affirmative procedure—

(a)the statutory instrument containing them must be laid before
Parliament as soon as reasonably practicable after being made; and

(b)15the regulations cease to have effect at the end of the period of 40 days
beginning with the day on which they are made unless, during that
period, the instrument is approved by a resolution of each House of
Parliament.

(3)In calculating the period of 40 days, no account is to be taken of any time
20during which—

(a)Parliament is dissolved or prorogued, or

(b)both Houses of Parliament are adjourned for more than 4 days.

(4)Where regulations cease to have effect as a result of subsection (3) that does
not—

(a)25affect anything previously done under or by virtue of the regulations,
or

(b)prevent the making of new regulations.

(5)Subsections (2) to (4) do not apply to regulations if a draft of the statutory
instrument containing them has been laid before, and approved by a resolution
30of, each House of Parliament.

(6)Where regulations under this Act are subject to negative resolution procedure
the statutory instrument containing them is subject to annulment in pursuance
of a resolution of either House of Parliament.

(7)Any provision that may be made by regulations under this Act subject to
35negative resolution procedure may be made in regulations subject to
affirmative resolution procedure or made affirmative procedure.

55 Interpretation: general

In this Act—

• “affirmative resolution procedure” is to be construed in accordance with
  40section 54(1);

• “legislation” means primary legislation, subordinate legislation and
  retained direct EU legislation;

• “made affirmative resolution procedure” is to be construed in accordance
  with section 54(2);

• “Minister of the Crown” has the same meaning as the Ministers of the
  Crown Act 1975 (see section 8(1) of that Act);

• “negative resolution procedure” is to be construed in accordance with
  section 54(6);

• 5“Northern Ireland Protocol” means the Protocol on Ireland/Northern
  Ireland in the EU withdrawal agreement;

• “part of the United Kingdom” means England, Wales, Scotland or
  Northern Ireland;

• “primary legislation” means—

  (a)

  10an Act of Parliament;

  (b)

  an Act of the Scottish Parliament;

  (c)

  an Act or Measure of Senedd Cymru; or

  (d)

  Northern Ireland legislation;

• “subordinate legislation” means an instrument made under primary
  15legislation or retained direct EU legislation

56 Extent, commencement and short title

(1)This Act extends to England and Wales, Scotland and Northern Ireland.

(2)This section comes into force on the day on which this Act is passed.

(3)The other provisions of this Act come into force on such day as the Secretary of
20State may by regulations made by statutory instrument appoint.

(4)A statutory instrument containing regulations under subsection (3) may not
appoint a day for the commencement of section 44, 45 or 47 unless—

(a)a Minister of the Crown has moved a motion in the House of Commons
to the effect that sections 44, 45 or 47 may be commenced on or after a
25day specified in the motion (“the specified day”),

(b)the motion has been approved by a resolution of that House,

(c)a motion to the effect that the House of Lords takes note of the specified
day (or the day which is proposed to be the specified day) has been
tabled in the House of Lords by a Minister of the Crown, and

(d)30the day appointed by the regulations is the same as or is after the
specified day.

(5)Regulations under subsection (3) may—

(a)appoint different days for different purposes;

(b)make transitional or saving provision in connection with the coming
35into force of any provision of this Act.

(6)This Act may be cited as the United Kingdom Internal Market Act 2020.

SCHEDULES

Section 10

Schedule 1 Exclusions from market access principles

Threats to human, animal or plant health

1(1)5The United Kingdom market access principles do not apply to (and sections
2(3) and 5(3) do not affect the operation of) legislation so far as it satisfies the
conditions set out in this paragraph.

(2)The first condition is that the aim of the legislation is to prevent or reduce the
movement of a pest or disease into the part of the United Kingdom in which
10the legislation applies (“the restricting part”) from another part of the United
Kingdom (“the affected part”).

(3)The second condition is that it is reasonable to believe that the pest or
disease—

(a)is present in the affected part, and

(b)15is not present, or is significantly less prevalent, in the restricting part.

(4)The third condition is that the potential movement of that pest or disease
into the restricting part from the affected part poses (or would in the absence
of the legislation pose) a serious threat to the health of humans, animals or
plants in the restricting part.

(5)20The fourth condition is that the responsible administration has provided to
the other administrations an assessment of the available evidence in relation
to—

(a)the threat referred to in sub-paragraph (4), and

(b)the likely effectiveness of the legislation in addressing that threat.

(6)25The fifth condition is that the legislation can reasonably be justified as
necessary in order to address the threat referred to in sub-paragraph (4).

(7)In determining whether the fifth condition is met the following
consideration is to be taken into account: whether the legislation, taken
together with any similar legislation applying in the restricting part,
30imposes measures of similar severity in response to threats of similar
severity arising from the potential movement of the pest or disease into, or
within, the restricting part (wherever those threats originate).

(8)In this paragraph “pest or disease” includes any organism or agent that is
liable to cause a disease or other harm to the health of humans, animals or
35plants.

2(1)The mutual recognition principle for goods does not apply to (and section
2(3) does not affect the operation of) legislation so far as it satisfies the
conditions set out in this paragraph.

(2)The first condition is that the aim of the legislation is to prevent or reduce the
5movement of unsafe food or feed into the part of the United Kingdom in
which the legislation applies (“the restricting part”) from another part of the
United Kingdom (“the affected part”).

(3)The second condition is that it is reasonable to believe that the food or feed
affected by the legislation is, is likely to be, or is at particular risk of being
10unsafe in a particular respect.

(4)The third condition is the potential movement of food or feed that is unsafe
in that respect into the restricting part from the affected part poses (or would
in the absence of the legislation pose) a serious threat to the health of humans
or animals in the restricting part.

(5)15The fourth condition is that the responsible administration has provided to
the other administrations an assessment of the available evidence in relation
to—

(a)the threat referred to in sub-paragraph (4), and

(b)the likely effectiveness of the legislation in addressing that threat.

(6)20The fifth condition is that the legislation can reasonably be justified as
necessary in order to address the threat referred to in sub-paragraph (4).

(7)In determining whether the fifth condition is met the following
consideration is to be taken into account: whether the legislation, taken
together with any similar legislation applying in the restricting part,
25imposes measures of similar severity arising from the potential movement
of the pest or disease into, or within, the restricting part (wherever those
threats originate).

(8)In this paragraph—

• “food” and “feed” have the same meaning as in Regulation (EC) No
  30178/2002 (see Articles 2 and 3);

• “unsafe”—

  (a)

  in relation to food, has the same meaning as in Article 14 of
  Regulation (EC) No 178/2002;

  (b)

  in relation to feed, means “unsafe for its intended use” within
  35the meaning given by Article 15(2) of Regulation (EC) No
  178/2002;

• “Regulation (EC) No 178/2002” means Regulation (EC) No 178/2002 of
  the European Parliament and of the Council of 28 January 2002
  laying down the general principles and requirements of food law
  40(etc), as it forms part of retained EU law on IP completion day.

3Where a decision is taken to exercise powers conferred by legislation in a
particular way for the purpose referred to in paragraph 1(2) or 2(2),
references to “legislation” in paragraph 1 or 2 (except in paragraph 1(1) or
2(1)) are to be read as references to the use of the legislation in that way.

4(1)45In paragraphs 1 and 2, “responsible administration” is to be interpreted in
accordance with sub-paragraphs (2) to (5).

(2)The responsible administration is the Scottish Ministers if—

(a)the restricting part is Scotland, and

(b)the provision contained in the legislation in question, so far as it
applies in Scotland—

(i)would be within the legislative competence of the Scottish
5Parliament if contained in an Act of that Parliament, or

(ii)is provision which could be made in subordinate legislation
by the Scottish Ministers, the First Minister or the Lord
Advocate acting alone.

(3)The responsible administration is the Welsh Ministers if—

(a)10the restricting part is Wales, and

(b)the provision contained in the legislation in question, so far as it
applies in Wales—

(i)would be within the legislative competence of Senedd
Cymru if contained in an Act of Senedd Cymru (assuming
15that any consent by a Minister of the Crown were given), or

(ii)is provision which could be made in subordinate legislation
by the Welsh Ministers acting alone.

(4)The responsible administration is a Northern Ireland department if—

(a)the restricting part is Northern Ireland, and

(b)20the provision contained in the legislation in question, so far as it
applies in Northern Ireland—

(i)would be within the legislative competence of the Northern
Ireland Assembly, and would not require the consent of the
Secretary of State, if contained in an Act of that Assembly,

(ii)25is contained in, or was made under, Northern Ireland
legislation, and would be within the legislative competence
of the Northern Ireland Assembly, and would require the
consent of the Secretary of State, if contained in an Act of that
Assembly,

(iii)30is provision which could be made in subordinate legislation
by the First Minister and deputy First Minister in Northern
Ireland acting jointly, a Northern Ireland Minister or a
Northern Ireland department.

(5)In any other case the responsible administration is the Secretary of State.

(6)35In paragraphs 1 and 2, “the other administrations” means each of the
Scottish Ministers, the Welsh Ministers, a Northern Ireland department and
the Secretary of State, other than the responsible administration.

5(1)A relevant requirement is not to be taken to directly discriminate against
incoming goods for the purposes of section 7 to the extent that it can
40reasonably be justified as a response to a public health emergency.

(2)In this paragraph—

• “public health emergency” means an event or a situation that is
  reasonably considered to pose an extraordinary threat to human
  health in the destination part;

• 45“relevant requirement”, “incoming goods” and “destination part” have
  the meanings they have in relation to the non-discrimination
  principle for goods (see sections 5 and 6).

Chemicals

6An authorisation under Chapter 2 of Title 7 of the REACH Regulation is to
be disregarded in determining (for the purposes of the mutual recognition
principle for goods) whether goods can be sold as mentioned in section
52(1)(b).

7The mutual recognition principle for goods does not apply to (and section
2(3) does not affect the operation of)—

(a)Article 67 of the REACH Regulation, or

(b)a restriction imposed in accordance with Article 129 of that
10Regulation.

8In paragraphs 6 and 7, “the REACH Regulation” means Regulation (EC) No
1907/2006 of the European Parliament and of the Council of 18 December
2006 concerning the Registration, Evaluation, Authorisation and Restriction
of Chemicals (etc), as it forms part of retained EU law.

15Fertilisers and pesticides

9The mutual recognition principle for goods does not apply to (and section
2(3) does not affect the operation of) any of the following—

(a)a prohibition or condition imposed in accordance with Article 15(1)
of Regulation (EC) No 2003/2003 of the European Parliament and of
20the Council of 13 October 2003 relating to fertilisers, as it forms part
of retained EU law;

(b)regulations under section 74A(1) of the Agriculture Act 1970, to the
extent that such regulations can reasonably be justified as a response
to a risk to—

(i)25the health or safety of humans, animals or plants, or

(ii)the environment.

10The mutual recognition principle for goods does not apply to (and section
2(3) does not affect the operation of) any of the following—

(a)Regulation (EC) No 1107/2009 of the European Parliament and of
30the Council of 21 October 2009 concerning the placing of plant
protection products on the market (etc), as it forms part of retained
EU law;

(b)the Plant Protection Products Regulations 2011 (S.I. 2011/2131);

(c)the Plant Protection Products Regulations (Northern Ireland) 2011
35(S.R. (N.I.) 2011 No. 295).

Taxation

11The United Kingdom market access principles do not apply to (and sections
2(3) and 5(3) do not affect the operation of) any legislation so far as it
imposes, or relates to the imposition of, any tax, rate, duty or similar charge.