New trade reforms aim to enhance economic growth, support UK businesses, and streamline internal trade across England, Scotland, Wales, and Northern Ireland.
The UK Government has announced major updates to the UK Internal Market Act, designed to help businesses trade more efficiently across the UK. These reforms are a direct response to feedback from companies, which have called for greater clarity, consistency, and collaboration across the four nations.
As part of the government’s Plan for Change—a strategy to unlock investment, boost jobs, and raise living standards—the revised rules aim to create a more transparent and business-friendly trading environment across the UK.
Key benefits for UK businesses
The updated internal market framework is aimed at putting business needs at the centre of the UK’s trading rules.
Key improvements include:
- Streamlined decision-making processes that reduce unnecessary trade barriers.
- Greater transparency in how rules are created and implemented.
- Enhanced collaboration between devolved governments and the UK Government, fostering unity while respecting local priorities.
- A new emphasis on evidence-based policymaking, considering economic, environmental, and public health factors.
These changes aim to create a stable and predictable trading environment, giving businesses the confidence to invest and grow, while ensuring continued economic cooperation between the nations.
Strengthening the UK internal market
The UK internal market is a vital component of the national economy, supporting over £129 billion in trade annually, equivalent to around 6% of UK GDP. For Scotland, Wales, and Northern Ireland, trade with the rest of the UK accounts for around 60% of their external sales.
By refining the operation of the UK Internal Market Act, the government seeks to:
- Maintain free and frictionless trade across all UK regions.
- Reduce red tape and administrative burdens for businesses.
- Safeguard devolved powers while enabling consistent national standards where needed.
The enhanced internal market rules mark a pivotal step toward a stronger, more unified UK economy. By simplifying trade processes, enhancing collaboration, and putting businesses first, the UK Government is paving the way for long-term economic growth.
These changes complement ongoing efforts to cut regulation, reduce administrative costs, and support both large enterprises and small businesses across the country.
Supporting a business-led, collaborative approach
The reforms follow a statutory review launched in December 2024 and a public consultation in January 2025, which received nearly 100 responses from businesses, academics, environmental groups, and devolved governments.
Douglas Alexander, Minister for Trade Policy, commented: “A thriving internal market is essential to the UK’s economic success, so we’ve listened to what businesses want — and we’re acting ahead of schedule. These reforms will keep trade flowing, reduce friction, and unlock growth across all four nations.”
Jane Gratton, Deputy Director of Public Policy at the British Chambers of Commerce, added: “Trade between the nations of the UK is vital to the health of our economy. This new streamlined approach gives businesses the certainty they need to grow, invest, and prosper.”
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