Draft Enterprise Act 2002 (Mergers Involving Newspaper Enterprises and Foreign Powers) Regulations 2025

Saqib Bhatti Excerpts

Wednesday 18th June 2025 General Committees

[Saqib Bhatti (Meriden and Solihull East) (Con)]

It is a pleasure to serve under your chairmanship, Sir Roger—I can confirm that there is no place I would rather be today. I thank the Minister for bringing forward this instrument and for her continued engagement on this issue. I will pose some questions, and I request that the Minister takes them in the context of not just this SI but the further SI that she will be putting forward for consultation.

The freedom of the press is the cornerstone of our democracy. It is an essential necessity in our democratic process. It allows the public to remain informed of current events, it questions and challenges those in power, and it keeps national debate balanced and accountable. Put very simply, if the freedom of the press is undermined the integrity of democracy is under threat.

The previous Conservative Government took decisive action to prevent majority control of a British newspaper by foreign states. These were vital measures to help protect the strength of our democracy. While His Majesty’s official Opposition support the changes, which will help to ensure the continued survival of our world-leading press industry, we would like the Minister to provide some reassurances on the foreign state influence regime. We have some serious concerns about the potential for the growing risk of state interference in British news media. We want cast-iron guarantees that the Government are taking the necessary steps to make changes to existing security provisions that must not jeopardise the UK’s freedom of the press.

The draft statutory instrument rightly sets a threshold for state-owned investment in a newspaper or news magazine at 15% of shares or voting rights. However, we have alerted the Government to the fact that, should various state-owned investors each purchase a 15% share, that could expose the UK’s freedom of the press to significant risk—a risk that the Minister acknowledges. Were multiple states to purchase 15% of shares, in particular when they have shared aims or purposes, that could have a chilling effect on the UK’s freedom of the press. Will the Minister reconfirm that any measures, including in secondary legislation, will also cover arm’s length bodies such as pension funds and other bodies controlled by states that might have influence?

The Minister is aware of the risk and, if I am not mistaken, has already given assurances that the Government will take action to prevent that from happening to relevant stakeholders. Can the Minister provide any further details on what form that action will take, when it will come into effect and whether the Government have considered other potential risks that might be coming down the road? I put on the record my special thanks to Baroness Stowell, who has been highlighting the risk with the Government and raising awareness of the dangers posed by allowing the loophole to come into force.

The previous Government had a proud record of taking decisive action in strengthening national security, in particular with the National Security and Investment Act 2021 and the National Security Act 2023, which showed that the Government must be alive to the risk posed by foreign states and be aware that the threats are ever-changing due to technological advances.

Last week, as the Minister may be aware, the shadow Secretary of State wrote to the Department seeking assurances. We have not yet received a response. I am sure it will be forthcoming, but I ask the Minister directly: are existing powers under the 2021 Act sufficient? Will they be used to help protect press freedoms against foreign interference, including cases involving minority shareholdings or instances of editorial pressure? Equally, the Government have suggested that the Secretary of State will have new powers to act when the independence of the press is under threat. Can the Minister give any further details on that, if possible at this time? If not, is she open to writing to us?

We, the Conservatives, of course welcome foreign investment, but we will never compromise on the integrity of our democracy. Many private foreign investors are interested in investing in a whole swathe of our industry, subject to our national security limitations or concerns. To that end, what consideration have the Government made about interpreting investment from certain states? Certain states work together, for example, and I name two that we always have to be conscious of: China and Iran. They almost always have institutions or investors that interlink with the state. What are the Government doing to ensure that our democratic principles are not undermined by foreign investment from bodies or private individuals in those particular countries?

I hope we can all agree on the importance of the freedom of the press and on the benefits that foreign investment brings to the UK economy. However, freedom of the press is one of the cornerstones of our society, and the Government must ensure that newspapers are given the opportunity to attract investment, while not threatening the principle of the freedom of the press. I hope that the Minister agrees with that principle. Any legislation must do more than gesture towards foreign state-backed shareholders and the risks that they pose to our democracy; it must be robust, have credible safeguards and protect our journalists, and it must ensure our fully independent free press and, ultimately, the integrity of our democracy.