Publishedduration1 hour ago
MPs and peers are at loggerheads over government plans to regulate trade between the four nations of the UK after Brexit.
MPs voted against changes to Internal Market Bill which would have given Scotland, Wales and Northern Ireland a greater say over UK trading rules.
Business minister Paul Scully said the government “cannot agree” with the Lords amendments.
The bill will now go back to the House of Lords for the third time on Monday.
The government has been defeated 14 times on this bill, and by overturning the Lords’ latest changes the bill continues to “ping-pong” – the term used when legislation goes back and forth between the Commons and Lords as they reject each others changes.
After the Brexit transition period ends on 31 December and the UK stops following EU rules and regulations, the devolved governments will gain powers in areas such as animal welfare, currently managed at the EU level.
The UK government says new legislation in the Internal Markets Bill is needed to recognise standards drawn up by the Scottish, Welsh and Northern Irish administrations.
MPs rejected amendments peers made to the bill on Wednesday, which would have allowed the devolved administrations more scope to diverge from rules that apply across the UK.
Amendments were also thrown out by MPs that would have given the devolved administrations a greater say over a new UK fund to replace EU regional spending, and in drawing up rules governing state support for businesses.
Labour’s shadow Business secretary Ed Miliband said the bill contains “deeply flawed proposals for undermining shared governance”.
Mr Miliband added: “We want the UK Internal Market Bill to reach the statute book, it must happen though in a way that does not ride roughshod over the way we are governed.
“I hope very much, for the sake of the United Kingdom, for the sake of respecting the devolution settlement, that the government will reflect on this over the coming days.”
The Scottish and Welsh governments argue the bill would undermine their ability to make their own rules.
SNP business spokesman Drew Hendry said the bill is “unwanted” and undermines devolution.
Opponents have also claimed the bill will stymie future planned discussions to agree UK-wide standards, by effectively giving Westminster the final word on which standards should be allowed.
Mr Hendry told MPs: “This shabby, shambolic, pernicious Bill should never have seen the light of day.
“It’s already been delivered an historic defeat in the Lords, they rightly tore it apart, yet this government has overturned all of their amendments and sent them back to them.”
media captionTime to smell the post-Brexit coffee? How the UK’s internal market may work from 2021
Northern Ireland clauses
On Wednesday the government agreed to drop controversial sections from the bill which would have allowed ministers to override the UK’s Brexit divorce bill.