Labour will today (Tuesday 1 December) seek to strengthen the
UK’s national security and back British businesses, by proposing
clear scenarios where powers to block foreign acquisitions and
protect UK companies from hostile actors should be used.
Labour is supporting the National Security and Investment Bill,
which gives the Government stronger powers to intervene in
instances where foreign acquisitions threaten national security.
But, unlike the Tories, Labour is pushing for ‘national security’
to be legally defined to reflect modern threats and better
protect British businesses.
The definition put forward by Labour would mean acquisitions of
British businesses would be blocked if they risk, for example,
the transferral of sensitive data; enabling hostile actors to
gain control of a crucial supply chain; impacting UK defence
capabilities; impacting the UK’s international obligations
including with respect to climate risk and protecting human
rights; and facilitating activities like terrorism, espionage,
and organised crime.
Transparently setting out the range of scenarios in which powers
to block foreign acquisitions could be used would give investors
clarity and confidence, helping ensure the Bill does not deter
foreign investment.
Crucially, it would also mean these scenarios would be enshrined
in law – rather than being decided at the discretion of the
Business Secretary of the day.
Labour will also argue that Conservative governments have
successively been complacent on national security, failing to
protect the UK’s critical national infrastructure and supply
chains from enterprises backed by foreign states.
, Shadow
Business Minister, said:
“Ministers have a poor track record on national security, from
waving through Huawei’s role in the UK’s 5G network to standing
by while acquisitions have seen British businesses stripped for
parts.
“Their history of making dodgy deals with mates also means it
would be wrong to leave deciding what is and is not a threat to
national security to the whim of Ministers.
“Labour is calling for clear rules that would set out when
foreign acquisitions should be blocked, to back British
businesses and protect our country's best interests.”
,
Shadow Minister for Asia and the Pacific, said:
"For 10 years successive Conservative governments have been
profoundly naïve and complacent about our national security and
our strategic national assets, leaving our home-grown businesses
at the mercy of hostile takeovers. The effects of the pandemic
have compounded these problems.
"While this Bill is a step in the right direction, it fails to
recognise that national security is intrinsically linked to
economic security. This failure leaves the UK’s critical national
infrastructure and supply chains open to threats, particularly
from enterprises and investment vehicles that are backed by
foreign authoritarian states who often seek to undermine the UK’s
defences.
"Labour's amendments seek to fix these flaws, by defending our
country's sovereign capability and delivering a more resilient
and secure Britain."
Ends
Notes to Editors
The full proposed amendment is as follows:
To move the following Clause -
When assessing a risk to national security, the Secretary of
State may have regard to factors including, but not restricted
to:
-
Whether the trigger event risks enabling a hostile actor to
gain control of a crucial supply chain, obtain access to
sensitive sites, corrupt processes or systems, conduct
espionage, exert inappropriate leverage or engage in any other
action which may undermine national security;
-
Whether the trigger event adversely impacts the UK’s
capability and capacity to maintain economic security;
-
The potential impact of the trigger event on the UK’s
defence capabilities and interests;
-
The potential impact of the trigger event on the
transfer of sensitive data, technology or know-how outside
of the UK;
-
The characteristics of the acquirer, including its
jurisdiction of incorporation and proximity to any state;
-
The potential impact of the trigger event on the security
of the UK’s critical national infrastructure;
-
Whether the acquirer in respect of a trigger event has a
history of compliance with UK and other applicable law;
-
The potential impact of the trigger event on the UK’s
international interests and obligations, including with respect
to the protection of human rights and climate risk; and
-
The potential of the trigger event to involve or facilitate
illicit activities, including terrorism, organised crime and
money laundering.
