Select committee: Defence Committee

Conclusion 2

Foreign Involvement in the Defence Supply Chain Published 14 Feb 2021 Paragraph 13 Addressed to Ministry of Defence
Conclusion (the committee's words)
As a result of the Ministry of Defence’s approach of encouraging inward investment, foreign involvement in the UK defence supply chain is widespread, with the UK hosting a broad range of UK-based and international suppliers. This approach has brought many benefits to the UK defence industry and wider economy.

From: Defence Committee, Foreign Involvement in the Defence Supply Chain (HC 699), paragraph 13, 14 February 2021

Government response

The government responded to the whole report on 27 April 2021 (deadline 14 April 2021).

Summary written by Accountability Index from the government's response. It is not the government's own words.

The Government welcomes the Committee's report, agrees with parts of it, and maintains its existing risk-based, case-by-case approach to foreign investment in the defence supply chain.

  • On a list of friendly countries, the Government "notes" the recommendation but considers its current "risk-based approach" "remains appropriate", with each case examined individually.
  • On Chinese ownership, it "notes" the recommendation, says it has assessed and "will continue to assess" investments where there are national security concerns, and does not consider it appropriate to comment on individual past decisions.
  • It welcomes the Committee's support for the National Security and Investment Bill, which it says will bring "new powers to modernise our investment screening regime".
  • On communication with small and medium sized enterprises, it "will seek to further enhance related communications" and "plan[s] to publish a refreshed SME Action Plan later this year".

Read the government's response ↗ Report an error