MNI EXCLUSIVE: Tight Window For UK Govt On Internal Mkts Bill

The UK government faces a tight timetable to pass legislation scrapping commitments on the Irish border agreed with the European Union before the transition period for British exit from the bloc draws to a close at the end of this year, potentially casting further doubt over future trade rules and complicating negotiations, a leading thinktank told MNI.

The Internal Market Bill, which would renege on the UK's commitments to keep Northern Ireland aligned with EU standards, will undergo a second reading on Sept. 14, with the House of Commons sitting 'in committee' on Sept. 15-16, before the legislation passes to the Lords, and then back to the lower house for a third reading. The government of Prime Minister Boris Johnson has stressed the bill must be on the statute books before the end of the transition period on Dec. 31, and it is possible it could just manage it by denying parliamentarians time for debate, according to Joe Marshall at the Institute for Government.

"The Withdrawal Agreement Bill earlier this year showed how willing the government is to push through its legislation to a tight timeframe when it wants to. Even if there is disquiet about the time for scrutiny, I can't see the programme motion being voted down," he said.

Meanwhile, officials in Brussels, who have warned the bill could wreck any chance of a future trade deal with the UK, will only have draft legislation and the explanations of UK government officials to rely on, knowing that subsequent parliamentary amendments could alter the final text. The doubts over the UK-EU's trading future have put sterling under heavy selling pressure.

For the Internal Market Bill to be effective, a Finance Bill, accompanying the Autumn Budget, will also need to get through parliament, Marshall said. But in the hurry to ensure Northern Ireland does not diverge from the rest of the UK next year, these other aspects of the legislative programme risk being squeezed on time.

FINANCE BILL TIME ALSO TIGHT

"On the finance bill (time) will probably be tight," he added, noting it may be possible for the government to rely on Budget Resolutions for legal authority before the finance bill gets Royal Assent.

The finance bill is expected to flesh out details on which goods moving in and out of Northern Ireland are at risk if no trade deal is agreed with the EU. It must also have a second read within 30 days of the Budget resolutions but the date of the Autumn Budget, expected in October or November, has yet to be announced.

"On normal timings, I wouldn't expect the Finance Bill to get royal assent this year (although provisions of it can have effect beforehand under Budget Resolutions passed by parliament)," Marshall said.

The European Commission called on the UK to amend the Internal Market Bill by the end of the month.

"Violating the terms of the Withdrawal Agreement would break international law, undermine trust and put at risk the ongoing future relationship negotiations," it said in a statement on Sept 10.