Parliamentary briefing: National Security and Investment Bill – House of Lords report stage
The government’s National Security and Investment Bill is currently being considered at report stage in the House of Lords.
The bill aims to give the government powers to scrutinise and intervene in business transactions, such as takeovers, that may have implications for national security.
Overall, we support the National Security and Investment Bill, its clear intention to control foreign investments that may have national security implications, and
the need for safeguards.
While the overarching principle and intentions of the bill are sensible, we have concerns regarding:
- part 1 (chapters 2, 3 and 4 – call-in power)
- part 2 – remedies
- part 3 – enforcement and appeals
These parts could create significant additional administrative burdens and uncertainty for investors.
We hope that these issues can be addressed during the bill’s passage through Parliament. This would ensure that strategic UK economic interests are protected without discouraging legitimate foreign investment or creating unnecessary red tape, which could damage business efficiency.
The UK is, and seeks to continue to be, an open and international trading centre.
In a worst-case scenario the uncertainty and extra administrative burdens created by the regime could have a negative impact on foreign investment, especially in our technology and manufacturing sectors.