The BRC has made a submission to the UK Internal Market consultation launched by BEIS. We look forward to further engaging with the policy ideas which come from the document as it moves into a legislative phase this autumn.

Our key conclusions on the plans 

  • We believe there is a wider consumer benefit in terms of supply chains, marketing and price of consumer goods for a combination of measures, whether by common standards frameworks, bolstered by legislation where appropriate, to create a new underpinning for the UK Internal Market. This allows goods to move freely within the UK market (the provisions of the Protocol excepted) while maximising choice, availability and quality for consumers. 
  • We note the research evidence within the consultation paper which estimates that the tariff-equivalent of not acting could initially amount to 2-3% on costs for the retail industry, rising to between 6-8% if divergence accelerated. Retail in the UK operates on the basis of supply chains across the four UK nations and are sensitive to regulatory divergences which can increase costs ultimately met by consumers. 
  • Retailers generally operate a single pricing strategy for the UK so all consumers get the best value wherever they live. Increases in cost from regulatory divergence within the UK will lead to higher prices for consumers. 
  • We would seek further clarity on the concept of “unfettered” access of goods from NI to the GB element of the UK internal market and how this will be guaranteed by forthcoming statute and how consumers could benefit from this approach. 
  • We would seek further details on how UK negotiated trade deals will operate in NI, given that NI will not have access to EU trade deals, but EU products and inputs may circulate in NI. Clarity on how “venue shopping” could be avoided which in itself may create distortions in the UK Internal Market is required.

Read our submission in full and look out for the latest developments and engagement opportunities on our Trade and Legal Communities on this issue in the coming weeks.