Liam Byrne

The National Security and Investment (NSI) Act has an important role to play in ensuring businesses in the UK can thrive and access vital investment without compromising our national security. We are therefore considering the responses to the previous Government’s Call for Evidence and reflecting on our own experiences of making decisions in the NSI system over the past six months.

In relation to my answer of 4 November 2024 to Question 11837, decisions about parliamentary engagement are matters for the relevant department owners of each review.

The Chancellor of the Duchy of Lancaster committed to a review of UK national resilience in his statement to the House of Commons on 19 July, in response to the Covid-19 Inquiry’s Module 1 report. The review is expected to conclude in Spring 2025 and includes a broad programme of engagement, including Parliamentary, to ensure the UK Government’s approach to resilience best helps mitigate the challenges we face. The review will also consider the future approach to reporting on and scrutiny of UK national resilience.

In relation to my answer of 4 November 2024 to Question 11837, the aforementioned reviews are scheduled to conclude in the first half of 2025. Decisions about publication and consultation are matters for the relevant department owners.

The Cabinet Office owns the resilience review which will conclude in Spring 2025 and will set the future direction for the resilience system. It is an internally-led review which will draw on existing evidence to inform what is working well and what could change, including the findings from the Covid-19 Inquiry Module 1 and the Grenfell Inquiry. In addition to regular discussions with stakeholders, Ministers and officials are continuing to meet with those from devolved, regional and local Government, businesses and civil society.

In relation to my answer of 4 November 2024 to Question 11837, the aforementioned reviews are scheduled to conclude in the first half of 2025. Decisions about publication and consultation are matters for the relevant department owners.

The Cabinet Office owns the resilience review which will conclude in Spring 2025 and will set the future direction for the resilience system. It is an internally-led review which will draw on existing evidence to inform what is working well and what could change, including the findings from the Covid-19 Inquiry Module 1 and the Grenfell Inquiry. In addition to regular discussions with stakeholders, Ministers and officials are continuing to meet with those from devolved, regional and local Government, businesses and civil society.

The Government continues to follow the EU’s Economic Security Strategy closely and engages regularly with the EU on these matters, including through the relevant committees under Trade and Cooperation Agreement.

The Department for Business and Trade is keeping the potential national security risk posed by outward direct investment in sensitive sectors under review, and continuing to engage with businesses and financial stakeholders on this issue. In May, the Cabinet Office issued public guidance on how the existing National Security and Investment Act powers allow the Government to intervene in certain outward direct investment transactions.

The Government is developing a steel strategy, in partnership with the steel sector and trade unions, that will set out a long-term vision for steel and create opportunities for public and private investment.

We have committed to providing up to £2.5bn for steel which will be available through the National Wealth Fund and other routes. This is in addition to the £500m for Tata at Port Talbot steelworks. When designing how best to invest this money, we will consider a range of factors, including leveraging private sector investment and making the UK a great place to invest.

The Government is developing a steel strategy, in partnership with the steel sector and trade unions, that will set out a long-term vision for steel and create opportunities for public and private investment.

We have committed to providing up to £2.5bn for steel which will be available through the National Wealth Fund and other routes. This is in addition to the £500m for Tata at Port Talbot steelworks. When designing how best to invest this money, we will consider a range of factors, including leveraging private sector investment and making the UK a great place to invest.

The Budget confirmed £975m over 5 years to the Aerospace sector. Industry led applications for R&D co-investment from the ATI Programme enter a competitive process. Competition for funding is fierce and only the best projects are selected: those that offer real innovation, reduced emissions and tangible economic benefits to the UK. Each application is subject to a value for money assessment by DBT economists, which underpins the estimated benefits from the Programme of at least £20bn of further private investment to 2040 and abatement of 125 MtCO2 of UK attributable global aviation CO2 emissions.

The Budget committed over £2bn to 2030 for zero-emission vehicle manufacturing and their supply chains. This will build on the current Automotive Transformation Fund (ATF) and Advanced Propulsion Centre (APC) programmes to drive economic growth and support high-value jobs, unlocking billions of pounds of private investment in the UK’s automotive industry and R&D innovation ecosystem.

As with the ATF and APC programmes, all future investment will be fully assessed on a strategic, technical, commercial, financial and economic basis – including consideration of future job creation. The economic assessment ensures value for money is consistent with HMT Green Book best practice.

On 4^th October, the government reached commercial agreement with the private sector and announced up to £21.7bn of available funding over 25 years to launch the UK’s new carbon capture, usage and storage industry. We expect this funding to crowd in £8bn in private sector investment for the 25 years, and demonstrating the investability of CCUS will unlock a further pipeline of billions of pounds in private sector investment. It is estimated that industry has spent £1 billion in investment already. The government also announced over £2bn of funding over 15 years for the projects in the first Hydrogen Allocation Round (HAR1). These projects will invest over £400m of private capital during construction across the UK.

A formal part of the policy design and delivery process involves reviewing prior relevant efforts to ensure government is maximising value for money wherever possible. Our value for money judgement is evidenced by appraisal and analysis developed in line with the HMT Green Book and has supported policy development at each stage of the CCUS programme and the first Hydrogen Allocation Round (HAR1). All future carbon capture build out projects and subsequent HARs will require approved business cases, which will contain robust value for money assessments. The business models supporting both CCUS and electrolytic ‘green’ hydrogen are designed to address the risks that currently are a barrier to first of a kind projects, incentivise project behaviour in line with government objectives and deliver value for money for consumers and taxpayers.

The FCDO's International Humanitarian Law Cell undertakes regular assessments of Israel's commitment and capability to comply with International Humanitarian Law in relation to the conflict in Gaza, in order to meet our legal obligations under the Strategic Export Licensing Criteria (SELC). Since 4 July 2024 assessments were submitted on 24 July 2024 and 1 October 2024. Assessments continue to take place.

We continue to keep Israel's compliance with International Humanitarian Law (IHL) in Gaza under review through a regular assessments process. Our judgment on Israel's IHL compliance remains as set out in the Foreign Secretary's statement to Parliament on 2 September.

The UK uses sanctions to deter and disrupt malign behaviour and demonstrate our defence of fundamental principles, including democracy, human rights and the rule of law.

I recently convened Ministers from across government to deepen our cooperation on sanctions, and review enforcement measures. I also discussed sanctions enforcement with leaders of the Overseas Territories during the Joint Ministerial Council. We regularly coordinate with allies including in the United States, Canada, EU and others to maximise our impact.

This month we announced our largest sanctions package against Russia since May 2023, and working with our allies we will continue to use sanctions to further restrict the revenues and military goods Russia relies on. We have also recently used sanctions to respond to Iran's malign activity, as part of UK efforts to support a more stable West Bank, and targeted members of a Russian cybercrime gang.

UK sanctions are designed and targeted to deter and disrupt malign behaviour, and to demonstrate our defence of fundamental principles, including democracy, human rights and the rule of law. The FCDO conducts reviews of the effectiveness and impact of our sanctions regimes. Any assessment will depend on the intended purposes of each individual regime - which are set out in the regulations for that regime. For example on Russia we consider wider macro-economic impacts, reduction in UK exports and imports and wider changes to trading patterns, changes to designated persons' behaviour, volume of frozen assets, and alignment with international partners. I launched a cross-Government review of sanctions enforcement with the support of Ministers from His Majesty's Treasury, the Department of Business and Trade, the Department for Transport and the Home Office. Through this review the Government will consider whether we have the right powers, approach, capacity and resourcing on policy, implementation and enforcement of sanctions.

In October, I convened the first Small Ministerial Group on sanctions, which launched a cross-Government review to examine whether we have the right powers, approach, capacity and resourcing on policy, implementation and enforcement, with an urgent focus on strengthening the latter. This grouping brings together key sanctions Departments: the FCDO; His Majesty's Treasury (with responsibility for both the Office of Financial Sanctions Implementation and HMRC); the Department for Business and Trade (with responsibility for the Office for Trade Sanctions Implementation and shared responsibility for the Export Controls Joint Unit with the Ministry of Defence and FCDO); the Department for Transport; and the Home Office.

At Autumn Budget 2024, the government protected R&D by allocating £20.4bn to support its missions, including the growth mission. Recent Department for Science, Innovation and Technology published research has found an average rate of return to public R&D of 40% after 6 years from when the investment is made [1]. The government’s investment will also boost business investment in R&D. Although estimates of the impact on private investment vary, on average £1 of public R&D investment leverages around £2 of private R&D investment in the long run [2]. The Office for Budget Responsibility is responsible for modelling the impact of government policy on the economy.

[1] Returns to Public Research and Development - GOV.UK

[2] Research and development: relationship between public and private funding - GOV.UK

Economic growth is the number one mission of the government. Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament.

Investment is a vital part of addressing the growth challenge. Autumn Budget began rebuilding Britain by increasing public investment and unlocking private investment. Public sector net investment will average 2.6% of GDP over the Parliament, with over £100 billion of additional capital investment over the next five years. This will strengthen the UK economy over the long term.

When making allocation decisions, the Treasury scrutinises individual capital spending proposals in line with the principles set out in the Green Book and Five Case Model, to ensure that they deliver value for money. It also considers these in line with the government’s wider priorities, such as growth, and their overall deliverability and affordability.

The independent Office for Budget Responsibility produces regular and comprehensive forecasts on the impact of current government policies, including judgements about fiscal multipliers.

The OBR confirms that the Budget will have a positive impact on GDP in the next parliament and into the longer term from additional public investment. If sustained, the OBR judges the higher public capital spending, and the higher private sector investment this incentivises, could increase potential output by 0.4% after 10 years, and 1.4% in the long run.

Economic growth is the number one mission of the government. Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament.

Investment is a vital part of addressing the growth challenge. Autumn Budget began rebuilding Britain by increasing public investment and unlocking private investment. Public sector net investment will average 2.6% of GDP over the Parliament, with over £100 billion of additional capital investment over the next five years. This will strengthen the UK economy over the long term.

When making allocation decisions, the Treasury scrutinises individual capital spending proposals in line with the principles set out in the Green Book and Five Case Model, to ensure that they deliver value for money. It also considers these in line with the government’s wider priorities, such as growth, and their overall deliverability and affordability.

The independent Office for Budget Responsibility produces regular and comprehensive forecasts on the impact of current government policies, including judgements about fiscal multipliers.

The OBR confirms that the Budget will have a positive impact on GDP in the next parliament and into the longer term from additional public investment. If sustained, the OBR judges the higher public capital spending, and the higher private sector investment this incentivises, could increase potential output by 0.4% after 10 years, and 1.4% in the long run.

Economic growth is the number one mission of the government. Through the growth mission, the government will deliver a milestone of higher living standards in every part of the United Kingdom by the end of the Parliament.

Investment is a vital part of addressing the growth challenge. Autumn Budget began rebuilding Britain by increasing public investment and unlocking private investment. Public sector net investment will average 2.6% of GDP over the Parliament, with over £100 billion of additional capital investment over the next five years. This will strengthen the UK economy over the long term.

When making allocation decisions, the Treasury scrutinises individual capital spending proposals in line with the principles set out in the Green Book and Five Case Model, to ensure that they deliver value for money. It also considers these in line with the government’s wider priorities, such as growth, and their overall deliverability and affordability.

The independent Office for Budget Responsibility produces regular and comprehensive forecasts on the impact of current government policies, including judgements about fiscal multipliers.

The OBR confirms that the Budget will have a positive impact on GDP in the next parliament and into the longer term from additional public investment. If sustained, the OBR judges the higher public capital spending, and the higher private sector investment this incentivises, could increase potential output by 0.4% after 10 years, and 1.4% in the long run.