UK Internal Market

Justin Madders Excerpts

Tuesday 22nd July 2025 Westminster Hall

[The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)]

It is a pleasure to see you in the Chair, Dr Huq. I am grateful to the shadow Minister, the hon. Member for Arundel and South Downs (Andrew Griffith), for giving me ample time to respond to the many issues that have been raised. He may be keen to take a phone call as a result of the shadow Cabinet reshuffle; maybe there is a promotion or relegation in the offing. I know that he has been keenly checking his messages all afternoon.

[Andrew Griffith]

You’re stuck with me.

[Justin Madders]

He is staying in place.

I congratulate the right hon. Member for East Antrim (Sammy Wilson) on securing this debate. He referred to not having a great deal of luck in applying for debates; perhaps he is right that he has not faced as much competition because this is the last day before recess. But he is also right that this is an important issue. Given the number of Members here today, there are clearly things that people wished to raise. I want to address as many of the points as I can in the time that I have. If I do not get around to all of them, I will ensure that the relevant Minister responds.

I start by stating the current position. In January, we announced that we were reviewing the UK internal market, a move that would be quicker and broader than was required in statute. We published a public consultation on the operation of the UK Internal Market Act 2020, and at the outset of the consultation the Government made it clear that they would not repeal any part of the Act, as it contains important provisions relating to the Windsor framework and the unfettered access of qualifying Northern Ireland goods to Great Britain. It is important that we have that in the back of our minds when debating these issues.

Upholding Northern Ireland’s place in the UK internal market was a key manifesto commitment, and we are determined to fulfil it. At the time, the Government stated that they were not minded to weaken the protections offered by the market access principles in the Act. Those protections facilitate the free movement of goods, provision of services and recognition of professional qualifications, resulting in real benefits for businesses and people across the whole of the UK.

We recognise, however, the concerns—and hear them again today—about how the UK internal market has been operating in practice, particularly for businesses. The Minister for Trade Policy and Economic Security, my right hon. Friend the Member for Lothian East (Mr Alexander), made a written ministerial statement to the House last week with the Government’s response to the review and the public consultation. The review made clear that businesses across all sectors strongly support the UK Internal Market Act’s market access principles to avoid unnecessary barriers to trade.

[Jim Allister]

Will the Minister give way?

[Justin Madders]

If the hon. and learned Gentleman does not mind, I have an awful lot of responses to get into, so I will not eat into that time with interventions.

The Department has been very much guided by businesses in developing the response to the review and the consultation, and in designing the changes and improvements we will make. We also believe that growth and prosperity are supported by devolution—a belief no doubt shared by hon. Members here. The outcome of the UK Internal Market Act review has been carefully crafted to ensure that unnecessary barriers to trade do not arise within the UK, while maximising the scope to realise the benefits of devolved decision making.

We want to work with the devolved Governments in Scotland, Wales and Northern Ireland to ensure that businesses and the Office for the Internal Market are more involved in discussions about the management of the UK internal market. We are confident that the changes we announced in our response to the review represent a more balanced and proportionate approach to managing the UK internal market than that pursued by the previous Government.

Our approach seeks to avoid the imposition of unnecessary new costs on businesses, while respecting devolved competence. Those reforms are part of our broader plan for change, which has shaped both the UK’s trade strategy and industrial strategy to make the UK the best place to do business, while respecting devolved powers and delivering prosperity across the nations. We are keen to work with devolved Government Ministers to implement those improvements as soon as possible and put in place the necessary changes to the UK internal market in an effective way for the benefit of all our citizens.

Hon. Members have spoken passionately, as we would expect, about the Windsor framework. I hope it goes without saying that this Government are wholly committed to the Windsor framework. It forms part of the withdrawal agreement between the UK and the European Union, and it supports the peace and prosperity brought about by the Good Friday agreement—one of the proudest achievements of the previous Labour Government. It also plays a vital role in ensuring the smooth flow of goods between Great Britain and Northern Ireland. That is why we supported the Windsor framework in opposition, and we continue to support it in government.

I recognise that the framework does not operate perfectly for everyone. Concerns raised by hon. Members today show that there is more to do in this area, but more than 10,000 traders have now signed up to the UK internal market scheme, and more than 1,100 operators are registered for the Northern Ireland retail movement scheme and Northern Ireland plant health label. Indeed, Northern Ireland is now one of the UK’s fastest-growing regions.

We also recognise the importance of ensuring that the right advice and guidance is available to businesses when they need it. We will continue to work on those issues. I heard what was said about the Federation of Small Businesses survey. We will speak to the federation and work with it moving forward—there were some pretty damning critiques from hon. Members today about what that survey found.

Our own surveys have found that customer satisfaction with the trader support service is running at 90%, so there is a significant disconnect between what our surveys are finding and what the survey from the Federation of Small Businesses has discovered. HMRC trade statistics published on 17 July showed that 11,400 businesses were associated with Great Britain and Northern Ireland customs processes in 2024. That was actually up 200 on the number for the previous year. I therefore suggest that the picture is not quite as apocalyptic as has been suggested by Members today, but we want to understand some more detail about why that survey showed such dissatisfaction with the current arrangements.

In taking forward commitments made in the “Safeguarding the Union” Command Paper last year, the Secretary of State for Northern Ireland has established the new body Intertrade UK. That body is independently looking at promoting trade across the whole of the UK, and at how we can guide and encourage businesses to trade more, invest more and grow more.

It is also important that we take the opportunity to look ahead at the broader benefits that businesses across the UK will yield from the common understanding that we are taking forward with the EU. This new partnership in agrifood, emissions trading, electricity and other issues, will remove barriers for businesses trading with our nearest neighbours. We hope it will also help smooth the flow of trade to the advantage of Northern Ireland, reflecting our commitment to the UK internal market.

On our commitments, I take issue with the comments made by the right hon. Member for East Antrim about the Secretary of State for Northern Ireland, who I believe is an honourable man. He is committed to Northern Ireland, and I do not accept at all the characterisation that he is disdainful or could not are less about Northern Ireland. Nothing could be further from the truth.

The right hon. Member for East Antrim also raised the issue of the duty reimbursement scheme. I understand there have been issues with that. We are seeing increased use of the scheme. HMRC processes claims quicker now than it previously did, with an average processing time of 14 days, but clearly there is more to do in that regard.

The right hon. Gentleman also raised the example of custard—clearly not a trifling matter, Dr Huq, if you will pardon the pun. The Northern Ireland retail movement scheme simplifies the movement of goods between Great Britain and Northern Ireland, based on UK food safety standards. In return, it was agreed that the “Not for EU” labels would be applied to some retail goods eligible to be moved by the scheme, but through the SPS agreement with the EU we will ensure that there is a consistent regulatory framework for SPS, and therefore expect “Not for EU” labels and checks to diminish significantly.

DEFRA is working closely with traders to ensure they are clear about where goods need to be labelled to be eligible for the scheme and has published detailed guidance to support that. Where possible, enforcement is proportionate, with only non-compliant goods removed, the rest of the consignment continuing on to its destination. The majority of NIRMS shipments pass into the Northern Ireland area without any issue or delay, but if there are specific examples of where things have gone wrong we would certainly be grateful to hear more detail and whether we can do anything more. However, we are making progress.

In terms of other issues raised, the hon. Member for South Antrim (Robin Swann) asked about Lord Murphy’s report. I can pass on to the Secretary of State for Northern Ireland the eagerness of Members to see that; I am sure he will be hearing those messages already. There is a commitment to publish the report in the UK Parliament and in the Northern Ireland Assembly. I am sure the Secretary of State will be keen to deliver that as soon as is practical.

I need to give the right hon. Member for East Antrim a moment to respond. I apologise for not having covered every issue that has been raised. To conclude, the Government are committed to protecting the UK’s internal market and delivering for all UK citizens and businesses. We need to work together to understand where the issues are so that there are no unnecessary barriers to the flows of goods and services. Like all members of this Government, I am committed to working with hon. Members from across the House to ensure that that is the case.