Source · Select Committees · Defence Committee
Foreign Involvement in the Defence Supply Chain
Defence Committee
HC 699
Published 14 February 2021
Government response
Fifth Special Report: Foreign Involvement in the Defence Supply Chain: Government Response to the Committee's Fourth Report of Session 2019–21 · published 27 Apr 2021
Recommendations & Conclusions
2
Conclusion
Acknowledged
Para 13
As a result of the Ministry of Defence’s approach of encouraging inward investment, foreign involvement...
Conclusion
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 …
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Government Response Summary
The government agrees that its open approach to inward investment has brought significant benefits to the UK economy and defence industry, citing substantial FDI, job creation, and strengthened industrial base through multinational firms and international partnerships.
Ministry of Defence
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8
Conclusion
Acknowledged
Para 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 …
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Government Response Summary
The government welcomes the committee's support for the National Security and Investment (NSI) Bill, affirming that it will introduce new powers to modernise the investment screening regime, ensure national security, and enable scrutiny of deals of any type or size.
Ministry of Defence
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