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UK Investment Screening Balances National Security with Economic Growth

The UK's National Security and Investment Act has cleared 95.6% of reviewed investment notifications, demonstrating a balance between protecting national security and fostering economic growth. The government intervened in nine transactions between April 2025 and March 2026, while streamlining the vast majority of legitimate investments.

  • 95.6% of investment notifications were cleared without further action, keeping the burden on businesses low.
  • The government reviewed 1,324 notifications, a 16% increase from the previous year.
  • Nine transactions faced intervention (blocked or conditional approval) between April 2025 and March 2026.
  • Defence, Critical Suppliers to Government, and Military & Dual-Use sectors were primary focus areas for detailed reviews.
  • The majority of interventions allowed acquisitions to proceed with conditions, with only one acquisition fully blocked.

The National Security and Investment (NSI) Act's balancing act between national security concerns and economic growth has yielded a remarkable 95.6% success rate in clearing investment notifications without further action, according to the latest Annual Report published today. Between April 2025 and March 2026, the government reviewed 1,324 notifications, a 16% increase from the previous year's 1,143, with all acquisitions assessed within the statutory 30 working days.

Of these, only 4.4% of notifications were called in for deeper scrutiny, maintaining a consistent ratio with prior years and highlighting the targeted approach to intervention rather than blanket restrictions on investment. The Defence sector accounted for 47% of the 60 call-in notices issued, followed by Critical Suppliers to Government at 33%, and Military & Dual-Use at 33%. These sectors are critical to underpinning the UK's strategic capabilities and infrastructure.

Interventions originated from a globally diverse range of acquirers, including those associated with countries such as China (three final orders), Germany, and the United States. Notably, the NSI Act applies equally to all acquirers, regardless of origin, ensuring an evidence-based defence of UK national security.

Chief Secretary to the Prime Minister, Darren Jones, reinforced the government's commitment to safeguarding national security, stating that "the first duty of any government is to keep our nation safe." He highlighted the data from this year's report as demonstrating the effective operation of these powers, allowing for targeted action while promoting economic growth and innovation through the swift clearance of most legitimate investments.

Why this matters: This report provides crucial insight into how the UK government manages foreign investment, ensuring vital sectors are protected without stifling economic opportunities. It offers a barometer of the UK's openness to international capital while safeguarding national interests.

What this means for you: What this means for you: For UK households, this policy indirectly contributes to national security by safeguarding critical infrastructure and supply chains, potentially leading to greater economic stability. For businesses, particularly those in sensitive sectors, it means navigating a robust, but largely efficient, regulatory framework for acquisitions and investments.

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