National Security (State Threats) Bill

Lord Cameron of Lochiel Excerpts

Committee stage
Tuesday 30th June 2026 Lords Chamber

[Lord Marks of Henley-on-Thames (LD)]

My Lords, I regret that I was unable to take part on Second Reading owing to a long-standing family commitment, but I am very grateful on behalf of both the Liberal Democrats and many others for the Minister’s engagement with us before Second Reading and since. It has been extremely helpful, and his Bill team have been extremely helpful. The fact that most of the issues we face are now resolved owes a great deal to that commitment.

As was made clear at Second Reading, we support the aim of the Bill, in the light of the advice given to the Government by Jonathan Hall KC that further legislation is needed to enable appropriate action to respond to damaging activity by foreign state actors, as opposed to private bodies, that is prejudicial to the United Kingdom’s security and national interests.

We also understand the urgency of the Bill and the reason why it has been taken, effectively, as emergency legislation. However, I agree with the noble Lord, Lord Alton, that the degree of hurry and the haste overall have, sadly, reduced the amount of scrutiny we have been able to give it. The speed does not obviate the need for Parliament, and this House in particular, to give the Bill as much scrutiny as it can in the limited time available. But we do so in the light of the Government’s commitment, given in the King’s Speech, and to which my noble friend Lady Ludford referred, to introduce legislation to tackle the growing threat from foreign state entities and their proxies and to improve the country’s defences against cyber security threats. The Minister has mentioned those again in recent days, and we therefore accept that this Bill is not the end of the story in relation to those commitments, and that its structure requires further development to respond adequately to these ongoing, complex and ever-changing threats.

In this group I will add only briefly to my noble friend Lady Doocey’s careful and comprehensive explanation in her speech on Amendment 5—to which the noble Lord, Lord Alton, and I have added our names—of the dangers of artificial intelligence and superintelligence. Such developments would enable artificial intelligence and superintelligence systems to exacerbate foreign power and foreign state threats. Were Amendment 5 to be passed, they would be specifically subject to the National Security Act. The amendment addresses the particular threat of hostile or potentially hostile foreign state actors and their proxies developing and exploiting these new systems, which are capable, as my noble friend Lady Doocey said, of wreaking untold damage to our national infrastructure and our economic and military interests.

The extent and forms of such damage, the scope of the threats proposed and the potential shape of future attacks are unforeseen and unforeseeable today—and therein lies a great part of their danger. The dangers outlined by the noble Lord, Lord Beamish, to our academic life and our universities are all exacerbated by the growth of AI and ASI alongside them. The noble Baroness, Lady Ludford, in a lighter moment, said that the noble Baroness, Lady Doocey, had frightened her; well, she has frightened us all, and rightly.

Until this morning, we found the Government’s response to this amendment slightly inadequate. However, following our meeting yesterday with the Minister, the Government have given a strong indication that they recognise the development by foreign powers of highly advanced AI systems that pose risks to our cyber security and our national security. The Government will therefore seek and take into account the views of the Independent Reviewer of State Threats Legislation as to whether amendments to our legislation are necessary to redefine power threat activity accordingly.

That undertaking goes a long way towards meeting our objective. However, I am keen to see—and I hope the Government will add to this—the involvement of others going wider than the independent reviewer. For all that he is widely respected, his term is in any case due to end shortly. But real expert input in this area is necessary, and the Government need to take advantage of it. I would be keen to know that the Intelligence and Security Committee of Parliament is to be consulted on this issue, and it should have the remit to consult with wider experts on AI development as needed.

As to the need for further legislation on this issue, we need look no further than the statement issued by our Five Eyes allies, including the leaders of our National Cyber Security Centre, on 22 June—only last week. The statement was headed, “The AI shift in cyber risk: why leaders must act now”. It made the urgency clear:

“While AI will help us improve cyber defence over time, it also accelerates the speed, scale, and sophistication of cyber threats.


Frontier AI models are anticipated to exceed current industry expectations, fundamentally transforming both offensive and defensive cyber capabilities. The timeline is not years, it is months”.


This is a threat to take seriously, and we underestimate it at our peril.

[Lord Cameron of Lochiel (Con)]

My Lords, I am grateful to all noble Lords who have spoken in this debate. We all agree that the Bill is needed. As we said at Second Reading, the Opposition support the principles behind the Bill and the creation of a designation regime to tackle state threats, most importantly the IRGC. We do, however, feel the need to again make criticisms of how we have reached this point.

When the Government introduced the Bill three weeks ago, the usual channels agreed to fast-track it in both Houses. Part of that agreement was that the Government would work with the Opposition in a constructive manner to ensure that the Bill is the best it can be. My honourable friend Alicia Kearns MP had meetings with officials in the Home Office, informing them of her concerns about gaps in the Bill. My noble friend Lord Davies of Gower sent to the Minister two letters confirming those concerns, the first on 10 June and the second on 17 June. We gave the Government as much advance notice as possible of the amendments we would table, to give them enough time to consider the proposals and reach a reasonable compromise.

--- Later in debate ---

[Baroness Northover (LD)]

My Lords, I speak briefly in support of my noble friend Lord Marks. He has put the case extremely effectively, taking from the amendment tabled by my honourable friend in the other place. Generally speaking, this is an area where there has been much cross-party working by the right honourable Andrew Mitchell, the noble Baroness, Lady Hodge, my noble friend Lady Kramer, and others. I therefore hope that noble Lords will be helpful in responding to this. The Panama papers, and many other sources, have revealed much information that would already have been in the public domain had beneficial ownership been clearer. Therefore, I hope the Minister will join me in supporting this amendment.

[Lord Cameron of Lochiel (Con)]

My Lords, the amendments in this group concern offences relating to the support and assistance of designated bodies. The noble Lord, Lord Walney, has not spoken to his amendments. In this regard, it is worth commenting that these Benches have a lot of sympathy with the principle behind the noble Lord’s amendments—he spoke at Second Reading last week—namely, the fact that a designated body, as a media organ, should not be a potential avenue by which criminals avoid prosecution. It is an issue worthy of consideration. It would be interesting if the Minister could confirm whether the offences proposed by the amendments tabled by the noble Lord, Lord Walney, would already be captured by the Bill as drafted.

Amendment 9, in the name of the noble Lord, Lord Marks, would make it an offence to conceal beneficial ownership relating to a designated organisation. Again, we on these Benches support the principle behind this amendment. The use, funnelling or concealment of funds to support a designated body should undoubtedly be an offence that is captured by the Bill, and I hope that the Minister can provide assurances that this will be the case. I look forward to his response.

[Lord Hanson of Flint (Lab)]

I am grateful for the contributions from the noble Lords, Lord Marks of Henley-on-Thames and Lord Cameron of Lochiel. The noble Lord, Lord Walney, is not in his place, but his amendments have been referred to. I confirm to the noble Lord, Lord Cameron of Lochiel, that the conduct captured in the amendments is already appropriately provided for by the existing provisions in the Bill. Had the noble Lord, Lord Walney, spoken to them, I would have gone into more detail, but that is the principle of the response to date.

I also thank the noble Lord, Lord Marks of Henley-on-Thames, for his Amendment 9, which intends to specify the concealment of beneficial ownership, and the establishment and maintenance of that concealment of finance and assets related to a designated body, as material assistance. The Government take corruption in all its forms very seriously. We welcome the noble Lord’s focus on this important issue, and the support of the noble Baroness, Lady Northover, for the objectives that the noble Lord, Lord Marks, has outlined.

On the noble Lord’s concerns about beneficial ownership, the Government have a strong record on reducing illicit finance, including working with overseas territories and Crown dependencies to do so. The register of overseas entities requires overseas entities that own UK property to register verified information on their beneficial owners with Companies House and to update that information. The Government also produce an annual progress report to Parliament on Companies House reforms, including updates to the register of overseas entities.

The “Assisting a designated body” offence is not limited to financial benefits; providing access to services is already explicitly covered by subsection (3) of the new Section 17B offence. Establishing or running an arrangement to look after a designated body’s assets is a service. Those who do so professionally are often called trust or company service providers. This reflects that there are no specific financial measures in the Bill but they can be applied in all environments. Therefore, the activity that the amendment seeks to address is already within the scope of the new offence.

The amendment is unnecessary in a positive way, in that the Bill is already covering this area, and although the noble Lord has drawn specific attention to this matter, I can explicitly confirm the extent of the provisions of the Bill, and we anticipate that a key utility for this power will be to call out and bear down on the very front companies the noble Lord has referred to which are carrying out foreign power threat activities as proxies for hostile powers. If the noble Lord looks at the Explanatory Notes to the Bill, he will see that that is very clear. I know he will have looked at those in detail, but I reaffirm for other Members of the Committee that the Explanatory Notes are very clear on that point.

If I may, I will follow up in writing to the noble Lord to give some further detail to him and his colleagues regarding the work that the Government are doing to prevent the misuse of beneficial ownership structures and financing of designated bodies more broadly. When I do that, I will place a copy of the letter in the Libraries of both Houses to ensure that all Members have access to my correspondence in due course. It is a matter for the noble Lord, but I think that we have covered these matters. It was very important that he raised them, but I respectfully ask him not to push his amendment; given that his is the last amendment standing in this group, I hope he will withdraw it and allow us to deal with matters by correspondence.