National Security and Investment Act 2021

Key Points

• It establishes mandatory and voluntary notification rules for certain acquisitions and gives the government a power to review and potentially block or unwind deals on national security grounds.
• Amendments broadened the regime to cover non‑UK parties and non‑individuals, and require more government reporting and public-facing summaries of decisions and risk assessments.
• Parliament debated whether to expand or narrow the regime; several amendments were accepted to increase transparency (annual reporting, summaries of decisions, risk assessments) while others sought to narrow scope (e.g., a proposed safe harbour for UK higher‑education and research bodies, and the removal of certain acquisition categories).
• Several reporting and transparency enhancements were added, including how final orders are varied or revoked, and the average times for notices and decisions, to improve parliamentary oversight.
• Some proposed safeguards were withdrawn or not adopted, reflecting a balance between tightening national security controls and maintaining investment flexibility.

Progress

The bill completed all stages and received Royal Assent on 29 April 2021, becoming the National Security and Investment Act 2021 and entering into force as law.

Voting

Throughout the passage, there was cross‑party engagement: opposition and some cross‑bench MPs supported stronger oversight, while government amendments often narrowed or clarified the regime. Lords amendments were debated and many were not carried in the Commons, though several transparency and scope changes were agreed as the bill progressed toward assent.