Labour calls for government to ‘strengthen’ new security and investment laws
Labour is calling for the government to go even further on its new legislation that seeks to curb foreign investment that is a threat to national security.
The party has said it supports Boris Johnson’s Security and Investment Bill, but it wants the government to enshrine in law the type of threats that would count under the new legislation.
The party will table an amendment that calls for any international acquisition of a UK business to be blocked if it results in the transfer of sensitive data, facilitates terrorism or impacts the country’s defence capabilities.
City A.M. understands that Labour will either vote for the government’s bill in its original form or abstain from the vote if its amendment is unsuccessful in the House of Commons.
Shadow foreign minister Stephen Kinnock said: “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.”
The proposed new law comes as a part of a push to safeguard the country from national security threats posed by hostile foreign nations.
It was brought in just after Johnson banned Huawei from supplying equipment for the UK’s 5G networks earlier this year.
A large group of Tory MPs claimed the telecoms giant could undertake surveillance of Britons for the Chinese government through 5G networks, a claim Huawei denies.
The government estimates that the new law will lead to 1,000-1,830 transactions being scrutinised every year, which would be a sharp increase from previous years.
Commenting on Labour’s amendment, a government spokesperson said: “These powers cannot and will not be used for economic, political or any other reasons – this is solely about national security in the strictest sense, as relating to the security of our nation and its people.
“The government has committed to being as transparent as possible – within the limits of national security – about the exercise of its powers under this regime. This including publishing details of all cases requiring remedies as well as an annual report.”