To ask the Minister for the Cabinet Office, if he will bring forward legislative proposals to amend the National Security and Investment Act 2021 to enhance the scrutiny of acquisition of entities that may pose national security risks.
Answered on
17 December 2024
The National Security & Investment Act 2021: Annual Report 2023-2024- published in September shows that the National Security and Investment system is continuing to operate well to protect sensitive sectors whilst continuing to support investment.
The Government is taking a number of steps to ensure the continued effectiveness of the NSI Act.
The previous government published a Call for Evidence in November 2023 and a response in April 2024. The Call for Evidence sought feedback from a wide range of stakeholders on the scope of the regime, the notification process and government guidance and comms. The Government is currently considering its next steps, drawing on responses received.
The Government will also review and produce a report on the Notifiable Acquisition Regulations 2021, which set out the areas of the economy in scope of the National Security and Investment Act’s mandatory notification requirements, as required by section 4 of the Notifiable Acquisitions Regulations.
The Government will complete a Post-Implementation Review, as committed to in the NSI Act Impact Assessment, evaluating the effectiveness of the NSI Act. This is expected to be published in 2026.