LABOUR is backing a Bill today that would block acquisitions of British businesses from hostile takeovers by overseas firms.

The party is supporting the National Security and Investment Bill, which gives the government stronger powers to intervene in instances where foreign acquisitions threaten national security. 

But, unlike the Tories, Labour is pushing for a legal definiton of national security, to reflect “modern threats” and to protect British businesses. 

Shadow business minister Chi Onwurah said it would be wrong not to enshrine a definition in law and to risk ministers deciding on a whim “what is and is not a threat to national security.”

The definition put forward by Labour would mean acquisitions would be blocked if they risk, for example, the transferral of sensitive data; enabling hostile actors to control a crucial supply chain; impacting defence capabilities; impacting international obligations, including with respect to climate risk and protection of human rights; and facilitating terrorism and organised crime.