Some thoughts on UKIM for UK in a Changing Europe. Addition issues to the Protocol controversial, esp 4 the devolved governments. Will HMG answer their objections directly? A from Wales on why English MPs and local govt might want to pay attention. https://ukandeu.ac.uk/uk-internal-market-bill-risks-and-challenges/#.X19R7oUv77E.twitter

MPs scrutinising UKIM this week should think about the UK’s unbalanced economy. This problem long predates Covid and the Johnson adminstration’s ‘levelling up agenda’. How do English MPs (and local politicians) think it is best addressed? Spreading power or much more 4 HMG? 2

MPs scrutinising UKIM Bill this week might benefit from paying attention to Wales. Yesterday the Wales SoS and Welsh Gov Counsel General were interviewed on the BBC’s Politics Wales, 13/09/2020: http://www.bbc.co.uk/iplayer/episode/m000mpvg via @bbciplayer 3

Simon Hart, talked of 60-70 ‘new powers’ coming to Wales, more responsibility for the Welsh Gov. Also ‘hopefully ore money coming into Wales.’ Note, though, he didn’t say who would decide how and where it would be spent. 4

Jeremy Miles, Welsh Gov Counsel General: an Internal Mkt is a good idea. But that this version takes away power to ensure high product standards for goods sold in Wales. And takes away control of spending decisions in areas that are already devolved (see debate abt the M4) 5

HMG already has wide spending responsibilities in Wales 4 Rail & Digital Infrastructure, plus Energy. Miles said UK Gov has failed to meet responsibilities to Wales in them. His conclusion: ‘All underfunded.’ Miles sees little evidence of HMG as a thoughtful investment partner. 6

NB: The Welsh Gov worked hard at coop with HMG throughout Brexit. It kept negotiating about the overall structure of InterGovernmental Relations, sought to develop Common Frameworks for post-Brexit governance and stayed in UKIM negotiations. On UKIM HMG chose to cut WG out. 7

HMG looking to put UKIM in place before the wider Intergovtal Review and separate from, not embedded in, Common Frameworks. Risks putting the economic regulation cart before the constitutional horse. 8

Infrastructure priorities look different depending on where you sit. Living near Cardiff I know how annoying the traffic around the Brynglas tunnels can be! But wd enhancing connections from SE Wales to Bristol, SE Eng and Ldn really help Wales to ‘level up’, or rebalance? 9

The Cdf-Ldn train now takes less than 2 hours! But the train isn’t electrified past Cdf to Swansea. Getting anywhere else outside SE Wales remains painful. Including England. Cdf-Brum is 2/3 the distance to London, takes longer. Cdf-Manc 13 miles further, takes 2x+ longer. 10

As well as its net costs and benefits, infrastructure investment can also re-locate existing activity. We’re not good at discussing this stuff. Whatever its net impact, for example, HS2 est. to benefit NE Wales by £50 mill pa, but cost SWales £200 mill. 11

Since the cost/benefits differ territorially, we need robust structures to represent places beyond SW1: local areas, regions and nations (including England!) No quick fix can rebalance the UK economy. Sustained improvement needs strong and secure roles for actors outside SW1. 12

Blue/Red Wall MPs may be able to bring goodies to their constituents in the name of ‘levelling up’. That’s unlikely to rebalance the economy. As written, UKIM might suggest a ‘Whitehall now does know best’ mentality - a proposition MPs might want to test this week. End.