National Security (State Threats) Bill

Lord Marks of Henley-on-Thames Excerpts

Committee stage
Tuesday 30th June 2026 Lords Chamber

[Baroness D'Souza (CB)]

My Lords, I will remark briefly on the excellent intervention by the noble and learned Lord, Lord Garnier, and others, on the sleeping crocodile and toothbrushes. I ask the Minister to say, in summing up, why it is so very difficult for the UK Government to be extremely firm with China on the issues we are discussing today, which involve vast trampling on international norms and human rights. China itself has made it clear that if it wishes to continue trade with the UK, it will do so. China acts in its own best interests. No matter how firm we are on other issues, if it is in China’s interest to trade in toothbrushes or whatever, it will continue to do so. I do not understand why the Government are so reluctant to build and publish a strategy that is extremely and overtly firm regarding the kind of transgressions we are discussing throughout this Bill.

[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.

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Moved by

[Lord Marks of Henley-on-Thames]

9: Clause 2, page 4, line 23, at end insert—
“(3A) The conduct specified in subsection (3) includes establishing, administering or maintaining a company, trust, partnership or similar arrangement which conceals, or is intended to conceal, the beneficial ownership of assets connected with a designated body.”Member's explanatory statement
This amendment makes the concealment of beneficial ownership, and the establishment and maintenance of that concealment of finance and assets relating to a designated organisation, an offence.

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

That moved a little faster than I had anticipated, so I now have to move my finger a little faster.

Amendment 9, in my name and that of my noble friend Lady Northover, reflects one that was moved in the House of Commons by my honourable friend Steff Aquarone, the Member for North Norfolk. The amendment would include in the offence of assisting a designated body the conduct of establishing or administering a company, trust or partnership, or another body, with the aim of disguising

“the beneficial ownership of assets”

controlled by such a body. The amendment is designed to advance transparency and to penalise the exercise of disguising the real ownership of the assets of bodies designated under this legislation, so that what is sometimes called corporate disguise cannot be used to assist unlawful foreign power threat activity by a designated body, and it would do so by making it an offence under new Section 17B.

As my honourable friend Mr Aquarone put it succinctly in the House of Commons:

“These groups rely on hiding their money, and opaque financial systems only help them to do that”.—[Official Report, Commons, 17/6/26; col. 931.]


By extending liability to those who make that opacity possible, we limit the ability of designated groups to continue to benefit from their assets and finances. The Government’s position appears to be, or appeared in the House of Commons to be, that existing mechanisms of financial control are sufficient protection of our national security from the use of disguised assets by designated bodies. The response of the Minister in the other place, Angela Eagle MP, was:

“Obtaining material benefits from a foreign intelligence service is an existing offence under section 17 of the National Security Act”,”.—[Official Report, Commons, 17/6/26; col. 934.]


so there was no need in this Bill to criminalise conduct that disguised the assets of designated bodies. I am afraid I disagree with that assessment.

Helping in such a disguise is not the same thing as deriving a material benefit from a foreign intelligence service, the offence with which Ms Eagle was concerned. Mr Aquarone gave a number of examples of egregious conduct by individuals who are the real owners of disguised assets being used to fund foreign state threats from bodies that are likely to be designated when the Bill becomes law. Among other examples, he cited the work by the Times, Bloomberg and Transparency International in exposing the use in the United Kingdom and elsewhere, by an Iranian-Cypriot banker already sanctioned by the UK Government, of disguised assets that may be used to fund the activities of the IRGC, which may become a designated body.

The Minister has responded to a number of questions in respect of which his department has set out ways existing financial controls will prevent, restrict or otherwise impact on conduct designed to hide the assets of designated bodies. The Government have stated that collaboration with Crown dependencies and overseas territories is sufficient to prevent the disguise of assets assisting designated bodies in those jurisdictions; and, further, that our requirements for the register of entities, and for company reporting with Companies House, are sufficiently robust to prevent the disguise of designated bodies’ assets being a threat. I am afraid I doubt that.

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

I am very grateful for the assurances and explanations that the Minister has given. I will not press the amendment to a vote now, but I invite him to consider, between now and the introduction of further legislation, whether there is a complete overlap, so that anybody who helps the disguise of assets, perhaps without knowing that the designated body is the beneficiary of that assistance, will be covered by the offence as it stands, because it seems to me that there is a possible lacuna where new legislation would be helpful. If he would add to his assurance by saying that he will at least consider whether there is such a gap, I would be happier in withdrawing my amendment, which I will seek leave to do in any event. I give him an opportunity to respond to that very specific point.

[Lord Hanson of Flint (Lab)]

I give the noble Lord the assurance that we will certainly look at those matters, and I will include that in the correspondence that I send him post the consideration of the Bill.

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

I am very grateful and, with that, I beg leave to withdraw the amendment.

Amendment 9 withdrawn.

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[Lord Carlile of Berriew (CB)]

My Lords, I hesitate to do so, but I disagree with my two noble friends who have just spoken. Some years ago I was in a supermarket in London and found myself standing next to an approximately 17 year-old young man who was wearing a t-shirt with a swastika on it. He was entitled to wear that if he wished, because it is not unlawful to wear a t-shirt with a swastika on it, however much one disapproves. I turned to the young man and, in a moment of complete foolishness, I suppose, said to him, “Excuse me, but do you realise that 6 million people were murdered by the Nazis on the back of that particular insignia?” He turned to me and said, “Sir, I’m most awfully sorry: I never knew that, and I will never wear this again”. I was surprised that I got away with it and lived to tell the tale, as noble Lords will be sure I have on many occasions.

I do not think that in this Bill, we should be criminalising the mere wearing of such insignia as I have described. This is not a counterterrorism Bill; this is a counter-state threats Bill. We had this discussion at Second Reading and, in my view at least, we are not merely replicating what is in other Acts of Parliament. Further, if somebody wears an insignia and there is a public order disturbance or a racially aggravated public order disturbance, there are plenty of other laws to deal with that activity.

My final reason for objecting to this amendment is one that perhaps some will think trivial. However, if your Lordships were to look at new Section 17B of the 2023 Act, on page 4 of the Bill, between lines 13 and 21 it contains no fewer than four split infinitives in “to materially assist”, to which I object as a matter of principle. I hope that the Minister might agree that they should read “materially to assist” in order to comply with the English language, something I was taught by my foreigner parents to comply with at all times if possible.

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

My Lords, we cannot support these amendments. As we have heard several times, this is emergency legislation, introduced at a time when an urgent response is necessary to the activities of some truly malign state actors and their proxies.

There has been a dangerous escalation in recent months and years, not only of the threats of military and quasi-military attacks, but of cyber attacks on our energy and transport infrastructures and on our economy more widely. Then there has been an appalling outbreak of antisemitic attacks in the UK and abroad, and in allied countries such as Australia. Those attacks have also given occasion, we should remember, to anti-Muslim attacks at home and abroad. Our traditions of tolerance and peaceful co-existence have been, and have certainly seemed, constantly under threat.

Against that background, it has been considered that the mechanisms of proscription under existing terrorism legislation have needed supplementing with the provisions of this Bill concerning malign state-sponsored threats. As the Minister has confirmed, and I do not wish to be repetitive of what has been said many times in the debates today, there is to be further government legislation to tackle the growing threat from foreign state entities and their proxies, and to improve this country’s defences against cyber security threats. The Bill is, in that sense, work in progress.

We do not see the need to tack on to the Bill new offences of wearing items of uniform, dissemination of particular types of publication, or further complex new powers for seizure of passports, all in the last stages of a piece of emergency legislation. There may be a case for some version of some of the measures proposed, under some conditions, after careful later consideration.

I echo some of the points made by the noble Lord, Lord Carlile, but there are other points about the difficulties we have had with the Terrorism Act and other legislation. I am not sure that I go as far as he does on split infinitives, although my personal preference echoes his. We should not be introducing legislation at this stage which would raise all the issues that have so troubled us under the Terrorism Act. Now is not the time for these measures and this emergency legislation is not the Bill.

[Lord Pickles (Con)]

My Lords, I normally bow to the views of the noble Lord, Lord Carlile, on these matters—I am not entirely sure I understand the point he made about split infinitives—but I am not sure he is right on this occasion; nor was the noble Lord who last spoke. The IRGC, for example, is not simply a military arm of the Iranian state. It also operates through propaganda, symbolism, recruitment and ideological influence. While the Bill addresses the hostile state activity, I do not believe it adequately addresses the ideological dimension.

Noble Lords have spoken about the level of antisemitism, which has been considerably worsened by the number of marches that we have seen display the symbols, flags and uniforms of terrorist organisations. There should be consistency between “designation” and a “proscribed organisation”. Designation should also have practical consequences. It would be very difficult to explain to members of the public why a designated organisation’s flags, insignia and symbols should continue to be displayed in support of that organisation at marches or on the street. Terrorism legislation already recognises the importance of symbols, uniforms and imagery in demonstrating support. This amendment would close a potential gap in the legislation.

National Security (State Threats) Bill

Lord Marks of Henley-on-Thames Excerpts

Report stage & 3rd reading
Tuesday 30th June 2026 Lords Chamber

[Lord Hanson of Flint (Lab)]

My Lords, I thank the officials of the House for the speedy turnaround of the amended Bill. It is a tribute to their dexterity that we have managed to turn this round much quicker than I expected, and our thanks go to them. I thank the officials in the Home Office and all the people behind the Bill who have given advice and support to Ministers on this crucial issue, including the security services and others. I particularly thank my private office, the Bill manager and the Bill team, and all the officials who are here.

I thank the Official Opposition for their courtesy, intensive scrutiny of the Bill and alternative suggestions. I say that to them genuinely, as well as to the noble Lord, Lord Marks, and the noble Baroness, Lady Doocey, on behalf of the Liberal Democrats, and to other colleagues who have spoken, particularly in this case the noble Lords, Lord Anderson and Lord Alton, who have been very engaged with this Bill.

This Bill has been done for a purpose, which is to allow my right honourable friend the Secretary of State to have the necessary powers to consider how best to act after the determination of state threats. The Bill, as amended, will now return to the House of Commons where it will be further scrutinised, and where I am confident the amendments made in this House will be accepted. I hope that the Bill will then go for speedy consideration for Royal Assent. On Royal Assent, I assure the House that the Home Secretary will take urgent action to examine state threats and, if necessary, bring forward appropriate measures as soon as possible.

It has been a pleasure to take this Bill through the House over two days. There have been some tensions and discussions, but I hope that, at the end of the day, we are agreed as one that the Bill will be a useful tool for the Secretary of State to help protect this country and its citizens from state threats. I beg to move that the Bill do now pass.

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

My Lords, from these Benches, I reiterate the thanks of all of us to the Minister and his team, both in the House and in the Home Office, and his Bill team generally, for the enormous help that we have had and for engaging with us. From our point of view, we have achieved some significant improvements to the Bill. We believe that the purpose of Bill, of which the noble Lord spoke, has been achieved with great speed and, generally speaking, in good humour. We are therefore happy that the Bill do now pass.

[Lord Cameron of Lochiel (Con)]

My Lords, I echo the thanks given by the Minister to the officials of the House for their actions this evening in moving us so quickly to this point. I thank the Minister for, as ever, a courteous, sometimes robust, debate across the Dispatch Box. We have had two intense days debating this Bill. As I said last week, these Benches have always supported the principles of the Bill and supported its passage through Parliament. There are some unfinished areas to which the Minister alluded. We hope to return to those in due course when a new Bill—a wider national security Bill—comes before Parliament. With those brief comments, I too hope that this Bill do now pass.