Government rejects reforms as threats from hostile
states mount
The Commons Business and Trade Committee today warns the
Government's response to the Committee's landmark economic
security investigation fails to meet the threats Britain now
faces and cautions the UK risks becoming "the weak link in
Western economic security defences."
Ministers fully accepted only four of twenty-five Committee
recommendations. In a world
where cyber-security, trade and economic policy are
increasingly weaponised as tools of political coercion,
the Committee is deeply concerned about Government's flat refusal
even to draw the line on where the UK's acceptable or
unacceptable foreign dependencies lie.
In its response to the Committee's landmark
report, the Government ruled out
giving critical certainty on which supply chains and
capabilities the UK
must maintain as sovereign - leaving
questions about its own strategic clarity but also
leaving industry in the dark about where to
commit resources.
Allied governments "extremely concerned"
The report reveals allies have raised concerns with the Committee
about shortcomings in the UK economic security defences. While
the EU, Japan and US create disciplined models with clear risk
prioritisation and strong enforcement, the UK relies on "a loose
collection of initiatives not a governing system."
Critical gaps identified
Ministers refuse to specify which foreign dependencies are
unacceptable or which sovereign capabilities are essential -
leaving industry in the dark. The Government has rejected
cross-Whitehall stocktakes, systematic scenario planning, and
dedicated economic security legislation adopted by allies, and
refused to provide backstops to the cyber-insurance market
despite the need for huge government subsides last year.
On deterrence against economic coercion, the response sets out no
clear triggers, response options, or consequences for hostile
actors. The Committee highlights weak safeguards against Chinese
subsidies - "a material concern to our allies in the EU."
Rt Hon MP, Chair, said:
"Economic security is the foundation of national security. Our
allies are building the institutions and enforcement capabilities
to match. Britain is not - and allies are deeply worried.
“Before World War II, the UK had to assemble new defences against
the risk of economic threats. Our allies have learned that lesson
better than us. We have not yet assembled an economic security
system that meets the threat of the future.
“Economic security is not a slogan. It means clear rules, real
consequences, and the capacity to act when Britain is targeted.
Until ministers move from acknowledgement to action, we will
remain vulnerable in a world that is getting harder by the day.
Allies fear Britain is becoming the weak link. Ministers must
prove them wrong and take steps now to strengthen our
defences."/ENDS
Notes
- Chair of the Committee Rt Hon
will make a short statement on
this report in the House of Commons tomorrow, expected late
morning or early afternoon.
