DOWNING Street is planning a new independent body to oversee the controversial internal markets plan, a leaked memo has revealed.

The document, which was photographed while a member of the Scotland Office staff was standing outside reading it today, indicates Westminster's move to establish "a new independent Office for the Internal Market" to "monitor the smooth running" of the legislation.

However it has sparked further fears that Westminster is trying to remove devolved administrations from the discussion and centralise power over the regulations.

The internal markets white paper, published in July, sets out plans for regulating trade within the four nations of the UK and includes a “mutual recognition” agreement which would see goods move freely within the country.

Even if Scotland or Wales upheld different standards for goods or services, they would still have to accept them from England.

Previously Mike Russell MSP said the Scottish Government would attempt to thwart the plans "at every stage", and said they were nothing more than attempt at a "power grab" from Holyrood.

Now other parties have raised concerns about the details in the leaked memo, and the lack of input from devolved administrations.

LibDem MP Wendy Chamberlain said: "The suspicion remains that this leaked body is just a new quango to force chlorinated chicken into every corner of the UK.

"We all want a successful economy with a smooth internal market. To guarantee long term success it will need all four administrations to agree the underlying frameworks. This mustn't be centralised in Whitehall.

"People will be safer, and the internal market stronger, if the UK Government agrees to take decisions jointly with the other administrations."

Patrick Harvie, co-leader of the Scottish Greens said the leaked document showed that legislation was already prepared despite the lack of input from Holyrood, adding that the proposals were "incompatible with devolution".

He said: "The Tories internal market proposal was subject to a very short consultation, with no draft bill presented, and which took place while the Scottish Parliament was in recess. Now just three weeks after the consultation closed it seems ministers are already signing off the press release, but still nobody has seen the legislation.

“The proposals are completely incompatible with devolution, threatening a huge range of policy areas including environmental, food and farming standards. If allowed to proceed these plans would even threaten Scotland’s decisions to ban fracking or prevent new nuclear power stations. The internal market could also put at risk bold public health measures such as minimum unit pricing, and it certainly could allow further private sector involvement in our NHS."

“The UK Government has taken its contempt for Scotland to new levels during this process. It has refused to discuss this assault on devolution with MSPs and it has declined to show the draft legislation to devolved administrations. It’s no wonder that a growing majority in Scotland are coming to the realisation that Scotland’s interests are best served by taking our future into our own hands.”

The "strictly embargoed" memo states the bill will "protect trade and jobs across the UK" and suggests more than 270 organisations and businesses took part in the consultation for it.

The SNP's Westminster leader said the document showed the Tories are planning to "overrule the democratic will" of Holyrood.

Ian Blackford MP said: "The leaked pictures confirm what we have been warning about since these proposals first emerged - the Tories are preparing to overrule the democratic will of the Scottish Parliament and are laying the groundwork for the biggest raid on devolution since 1999.

"Despite the decisive rejection from the Scottish Parliament - the Tories are intent on undermining devolution and continuing with their power grab plans.

"The SNP remain firmly opposed to this power grab and the Tory government must step back from these plans that will take a wrecking ball to the very foundations of the devolution settlement.

"People in Scotland are already looking on in dismay at the out of touch Westminster system acting against our interests - with majority support for independence already becoming the settled position.

"If the Tories continue with their power grab threat, then it would be yet further evidence that Scotland's interests are best served and protected by becoming an independent country."

A UK Government spokesman said: “We’ve been clear that we will be legislating to protect the UK’s vital internal market when the Transition Period ends. This will protect trade and jobs and ensure that goods can continue to travel barrier-free throughout the UK, as has been the case for hundreds of years.
“Following our consultation, we are now preparing this legislation. Further details will be confirmed in due course.”