Government warned UK could become ‘back door’ to Russian threats as foreign companies snap up British firms

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The authorities has been warned the UK dangers turning into a “back door” to cyber and different nationwide safety threats as foreign companies snap up British firms.

Checks are “not keeping pace” with rising threats from countries like Russia, a strong group of MPs says.

They name for ministers to be notified of proposed investments which might have an effect on media freedom, entry to the delicate information of particular person, cybersecurity and important provide chains.

MPs have attacked the proposed UAE-backed takeover of the Telegraph newspaper group, expressing issues about foreign state possession and warning that it’s inconceivable to “separate sheikh and state”.

Liam Byrne, the chair of the Commons Business and Trade sub-committee, mentioned it was “vital that we do not let our country become a “back door” by way of which our adversaries purchase capabilities that imperil the collective safety of both us or our NATO Allies.”

The report is printed as Rishi Sunak branded “clearly ridiculous” Russian President Vladimir Putin’s declare that his invasion of Ukraine was a results of Nato growth.

The warning comes within the committee’s submission to the federal government forward of reforms to the UK’s investment-screening regime.

Under the National Security and Investment (NSI) Act, this permits ministers to block purchases of or funding in firms in strategic industries on nationwide safety grounds.

The submission warns the UK is dealing with a “surge” of funding from nations classed as dictatorships as nicely as new threats from China and Russia.

With so many transactions ministers threat “losing sight of the wood for the trees” and missing key transactions with security implications, they say.

Both the US and the EU have recently announced tougher investment checks.

MPs also warned the lack of an explicit definition of “national security” was creating confusion.

MPs additionally condemn a part of the Act as a “fundamental roadblock to scrutiny” as a result of it prohibits telling Parliament how authorities choices are made.

Mr Byrne mentioned: “It is vital that Parliament is given proper oversight of the decisions made by ministers, so we can assure the House of Commons that the decisions made on investment screening are sound decisions.

“Right now, the truth is we cannot give that assurance, because ministers do not have the legal power to share the information we need to check decisions. That risks making a nonsense of parliamentary oversight of our economic security. That is something we simply cannot afford to go on.”