LABOUR called on the government today to strengthen powers of intervention into foreign acquisitions of British companies that would damage the economy.

The party is urging ministers to keep high-growth and strategically important companies in Britain.

Ministers should have intervened in the takeover of British technology firm Arm by the US company Nvidia on public interest grounds, Labour said.

Shadow business secretary Ed Miliband warned that foreign acquisitions are “hollowing out” Britain’s tech sector after it was revealed that ministers have not met with representatives from Arm, Softbank or Nvidia in 2019 or this year.

Labour says it is supporting the National Security and Investment Bill, which strengthens powers for the government to intervene when foreign acquisitions threaten national security.

But it is also calling for the government to strengthen its powers to intervene when acquisitions could see vital companies stripped for parts or moved overseas.

During a debate on the Bill, Labour will call on ministers to say whether they have obtained legal assurances about Arm’s future in Britain. 

Mr Miliband said: “Every month that goes by when ministers don’t legislate on these issues leaves us more vulnerable to losing vital economic interests.”