Source · Select Committees · Defence Committee
Recommendation 8
8
Paragraph: 41
The UK previously lacked foreign direct investment screening legislation which left the defence supply chain,...
Conclusion
The UK previously lacked foreign direct investment screening legislation which left the defence supply chain, alongside other sectors of the UK’s economy, vulnerable to influence from hostile foreign investors. The National Security and Investment Bill, once law, will change this situation and offer greater protection to the UK’s economy. Alongside industry and many expert commentators, we support the introduction of this Bill and the planned regime.
Paragraph Reference:
41
Government Response
Acknowledged
HM Government
Acknowledged
The Government’s current powers to protect against hostile foreign investment come from the Enterprise Act (2002). Although this Act has been amended, it is no longer sufficiently flexible to address the current risks and changes in the way that technology is developed and applied. The Government welcomes the Committee’s support for the NSI Bill, which will bring in new powers to modernise our investment screening regime, to ensure we strike the right balance between preserving our national security and enshrining our position and reputation as a desirable country in which to invest. This legislation will ensure that we can properly scrutinise any type of deal, of any size, in any sector, that may pose a threat. 6 Fifth Special Report of Session 2019–21