New trade reforms to boost business across the UK

The UK Government has announced a new update to the UK Internal Market Act that will improve the way businesses trade across England, Scotland, Wales, and Northern Ireland

These changes are designed to reduce barriers, create better and clearer guidance, and create a more cooperative approach between the UK and devolved governments, all while enabling businesses to grow and invest with confidence.

A more collaborative and transparent approach

The changes are part of the government’s Plan for Change, which focuses on unlocking investment, raising living standards, and driving long-term economic growth. Following feedback from businesses, the new rules are designed to make the internal market more efficient and responsive to the needs of firms operating across the UK.

One key improvement is the introduction of a more transparent and streamlined rulemaking process. The changes will make it easier for businesses to understand how decisions are made and applied ultimately reducing regulatory uncertainty and improving consistency across the four nations.

In response to concerns from businesses, the government has also committed to making sure that future rules are based on a wider range of evidence. This will allow for more informed and inclusive decision-making, creating better communication and engagement between governments and the business community.

Empowering devolved governments while protecting trade

The changes also give devolved governments more flexibility to set policies that reflect their local priorities, such as environmental protection and public health, while maintaining the integrity of the internal market, which was valued at over £129 billion in 2019.

If a proposed change from a devolved administration is expected to have only a limited economic impact, it can now be approved quicker through a simplified process. This will hopefully reduce administrative delays and allow local governments to act more efficiently when needed.

The new approach will allow all four governments to work together more effectively on shared rules in key areas, such as chemicals, pesticides, and other regulated sectors. This cooperative framework is expected to minimise unnecessary trade barriers while respecting the devolved powers of each nation.

Supporting growth through simplified rules

The changes also hope to protect and expand the significant volume of trade between the UK’s nations. In 2019, internal UK trade was worth more than £129 billion, accounting for approximately 6% of the UK’s total economy.

For devolved nations, trade with the rest of the UK typically accounts for around 60% of their external sales, showing the importance of smooth inter-nation commerce.

By reducing friction and making internal trade more predictable, the government expects the reforms to support businesses of all sizes, streamline processes, and lower regulatory burdens. This is especially important for small and medium-sized enterprises (SMEs), which often face the most significant challenges in navigating complex regulations.

A result of business consultation

These updates follow a wide-ranging consultation launched in January 2025 and a statutory review process announced in December 2024. Nearly 100 responses were received from businesses, academics, environmental groups, and devolved governments. The final changes reflect this input and mark a shift toward a more business-focused and collaborative model for managing the UK’s internal market.

While these reforms do not affect Northern Ireland’s trading arrangements under the Windsor Framework, the UK Government reaffirmed its commitment to maintaining a strong internal market and continuing the Common Frameworks programme. The new rules are expected to strengthen business confidence, boost trade, and drive sustainable growth throughout the UK.