National Security (State Threats) Bill

Baroness Ludford Excerpts

2nd reading
Tuesday 23rd June 2026 Lords Chamber

[Baroness Ludford (LD)]

My Lords, as my noble friends have said, we on these Benches strongly support the Bill, but with some caveats about process, scope and drafting. We felt bafflement and frustration as this Government—and indeed the last one—failed to act on the very obvious threat from the IRGC. The Conservative Government promised to in 2023 but did not deliver in office. But we then accepted that the tool of proscription had to be replaced by a new formula of designation for state bodies, although I note what the noble Lord, Lord Polak, said about Hezbollah, which was interesting. Jonathan Hall KC’s report was delivered over a year ago, and now, having dragged their feet, the Government want to rush the Bill through at unseemly speed, and at the possible expense of precision. The noble Lord, Lord Anderson, suggested, understandably, that a draft Bill might have been preferable.

As the Minister said in his introduction, state threats are “both evolving and enduring”. The Bill needs to be scrutinised and stress-tested sufficiently in Committee that it produces lasting but nimble legislation, which is capable of future adaptation. We know that we are experiencing the equivalent of terrorist acts emanating from states such as Iran and Russia, in sabotage, physical attacks, arson, firebombing and propaganda—with Jewish communities often targeted, shamefully—as well as from China in spying, harassment and death threats to Hong Kong pro-democracy activists. Often proxies are used for these nefarious activities, in parallel with espionage and cyber threats from state intelligence agencies.

The Bill must be fit for designation of foreign power entities backed by any state. However, the IRGC is the clearest and most obvious one. These Benches therefore envisage seeking to amend the Bill so as to ensure, on its face, that IRGC designation is properly pursued within one month. This is an urgent priority. If not the IRGC, and not in this Bill, then who and when? The Minister made encouraging noises about designation for the IRGC, but no commitment. A commitment is needed—not the wiggle room that one suspects some bits of Government still seem to want.

We also wish to extend the offence of material assistance to a designated body to include the setting up and use of companies or trusts to hide the true ownership of assets belonging to that body, and we will explore that in Committee. My noble friend Lady Doocey also sought clarity that organisations could not escape the Bill’s net by operating from abroad in this digital world. She also suggested that foreign state threats in the Bill should be capable of including superintelligent AI tools.

Many noble Lords referred to humanitarian activities, conflict resolution and peacebuilding efforts. Some of this activity requires, as the noble Lord, Lord Anderson, put it,

“intensive dialogue with brutal and unpleasant regimes to which it may be difficult … for western Governments to speak”.

I think we all accept that.

The noble Lord, Lord Davies, explained the Opposition’s objection to the prohibited purpose offence having the limitation of being

“prejudicial to the safety or interests of the United Kingdom”.

One problem with removing this limitation is that it might expose the activities of humanitarian and peace- building organisations to criminalisation. Indeed, the fact that this limitation of the offence, or defence to it, does not appear in proposed new Sections 17B or 17C on assisting or material benefits, but only in proposed new Section 17A on supporting a foreign power entity, illustrates perhaps the worries raised by the noble Lord, Lord Anderson, my noble friends Lady Tyler and Lady Northover, and others.

Other organisations besides the IRGC are in our minds. The Hong Kong Economic and Trade Office has been mentioned in the debate, and it was debated yesterday. No doubt it was once an office that did what it said on the tin, but it now seems to be an extension of the transnational repression perpetrated by China.

The noble Lord, Lord Pickles, also raised the issue of organisations which might pose a threat but do not fit the definition of state-sponsored threats, such as the Muslim Brotherhood. One could, no doubt, think of others.

All noble Lords who have spoken have welcomed the Bill as an important step forward but will seek to ensure that it is watertight but adaptable, durable but not inflexible. We have a task before us in Committee. The Government would do well to benefit from all the expertise which has been on display in the Chamber today—and to listen and to incorporate changes where justified. As well as legal, diplomatic and other expertise, we are fortunate to have heard from not one, but two, former Independent Reviewers of Terrorism Legislation, in the noble Lords, Lord Anderson and Lord Carlile, as well as the chair of the Intelligence and Security Committee. Let us draw on all the skills and talents to perfect the Bill. The Government would be making a mistake if they were just to rush through without listening to all the very well-intended suggestions for amendments that have been made.