The Government has upgraded national security investment powers
The National Security and Investment White Paper, released at the end of July 2018, outlines how the Government will modernise security investment powers.
The reform plans to bring the UK more closely in line with other countries’ regimes. New legislation will be introduced to ensure that the Government has stronger powers in “last resort” scenarios when the nation’s security is at risk.
The White Paper states that the Government wants the UK to remain an ‘open and liberal trading nation’ while protecting national security, however it wants businesses and investors to notify it of any transactions that might raise national security concerns.
The National Security and Investment White Paper has proposed that, moving forward, the government will be able to “call in” transactions that may give rise to national security risks. New regulations must reflect the need for flexibility.
National Security and Investment
Business Secretary Greg Clark, who announced the release of the National Security and Investment White Paper, noted that strengthening investment powers will upgrade UK national security merger rules whilst maintaining openness to international investment:
“Britain is recognised the world over as one of the best places to do business, attracting investment that benefits communities and workers across the country. To retain this hard-won reputation our merger and takeovers rules need to be responsive to technological, economic and national security changes.”
The proposals that are recommended within the White Paper are consistent with the actions of many of the UK’s allies, including countries such as Australia, Germany, Japan, and the US.
Increased UK security
This report was released a couple of weeks prior to the Defence Secretary Gavin Williamson stating that the defence sector must “spend more because of the increasing threat that the world faces.”
With so much conversation surrounding increased security, now is a valuable time for your business to start considering defence and security tender opportunities.
Access Security Tenders with DCI
Our service is well positioned in the defence market and is seen to be an excellent support to suppliers and buyers interested in security tenders.
If you would like more information on tendering for security contracts, request a demo with a DCI defence expert.
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