The industry understands the vital need to protect the UK’s national security and supports the government’s ambition to improve the UK’s investment screening system and grow the UK’s status as a global magnet for investment.
While the UK system offers a largely predictable regime, it is viewed by international investors as an additional cost of doing business in the UK, which can seem at odds with the pursuit of growth. While some of the reforms announced on 22 July 2025 and proposed by government in this consultation are welcome, the overall package of proposed changes is unlikely to meaningfully reduce the burden on business.
Our response welcomes the proposed exemptions for internal reorganisations and the appointment of liquidators, but we urge the government to go further to ensure the regime is proportionate, well-targeted and internationally competitive by:
- Limiting the scope of transactions covered
- Increasing transparency and dialogue so that fewer notifications enter the system
- Introducing fast-track or post-closing procedures to streamline the system
- Amending non-compliance effects to improve regulatory predictability
In April 2025, we jointly with Freshfields, published a report comparing key features of the UK’s investment screening regime to those in other jurisdictions, setting out examples of best practice that should inform future reform in the UK, which you can find here.