John Swinney 'totally frustrated' by UK refusal to repeal post-Brexit 'power grab' legislation

The First Minister said the Internal Market Act (IMA) eroded the powers of Holyrood by allowing Westminster to legislate in devolved areas "over our heads".

He said Labour opposed the legislation, which the SNP has labelled a power grab, but is now unwilling to scrap it.

The UK government previously promised "improvements" would be made to the Act, conceding there were "real concerns" about how it had operated to date.

Following the UK’s departure from the European Union, the-then Tory UK government introduced the IMA to create a single market across the four nations of the UK.

The legislation, however, caused difficulties for the Scottish Government when it attempted to introduce a deposit return scheme for empty cans and bottles ahead of the rest of the UK.

In the wake of a recent review, the UK government is promising changes, including the introduction of exclusions to the legislation that have been agreed by all governments within a common framework.

As well as considering economic impacts, issues of environmental protection and public health will also be looked at for exclusions, with the UK government saying this ensures a “balance of factors is considered”.

But speaking at a special meeting of Holyrood’s committee conveners, Mr Swinney said: "I do not in any way, shape or form support the right of the United Kingdom parliament to legislate in areas of devolved competence over our heads, which is why I want to see the Internal Market Act repealed, because I think it erodes the powers of this Parliament."

He added: "I have to say I'm totally frustrated by the unwillingness of the current United Kingdom government to repeal the Internal Market Act. The Labour Party were opponents of the Internal Market Act when it was passed in the House of Commons. We had a united front on that question.

"They now form the government, but are not willing to repeal the Internal Market Act, despite the fact that the Scottish Government has given commitments around questions on the use of common frameworks, which I recognise the necessity for.

"But the crucial point about common frameworks is that they respect the devolution of powers to the Scottish Parliament. The Internal Market Act does not do so. It provides the ability to countermand the powers of the Scottish Parliament, and I think that's unacceptable."