- National Security and Investment Act Annual Report shows 95.6% of notifications reviewed were cleared to proceed without further action, keeping the burden on business low.
- The government received 1,324 notifications during the reporting period, an increase of 16% from the previous year.
- Interventions spanned a globally diverse range of investment origins, with final orders and detailed reviews covering transactions involving acquirers associated with the UK, China, Germany, the United States, and the United Arab Emirates, among others.
The government took action to block or impose conditions on nine transactions between April 2025 and March 2026, while clearing the vast majority of notifications made under the National Security and Investment (NSI) Act, according to the Annual Report published today.
Over the year, the government issued a total of 60 call-in notices to review transactions in greater depth. Overall, the government called in acquisitions across almost all specified sensitive sectors, issuing call-in notices in 16 of the 17 areas of the economy subject to mandatory notification.
These reviews predominantly focused on the Defence sector, which accounted for 47% of called-in acquisitions, followed by Critical Suppliers to Government and Military & Dual-Use at 33% each. Acquisitions can be associated with multiple areas of the economy.
The NSI Act keeps inward investment flowing, while giving the government the power to intervene to protect national security where necessary. The latest statistics demonstrate that the government is operating these powers effectively and transparently, providing investors with the certainty they need to help secure growth across the UK.
Chief Secretary to the Prime Minister, Darren Jones, said
“The first duty of any government is to keep our nation safe, which is why we are committed to protecting the UK’s national security and safeguarding our most critical infrastructure and supply chains.
“Data from this year’s report shows our investment security powers are working effectively. We are taking firm, targeted action to protect our national security, while ensuring that the vast majority of legitimate investments are cleared quickly to promote economic growth and innovation.”
The report shows that the government saw an increase in the number of notifications received year on year, rising from 1,143 to 1,324.
Despite this increase in volume, the government took a decision on whether to call-in or clear all notified acquisitions within the statutory 30 working days of the review period.
Of the 1,220 notifications reviewed over the year, 95.6% were cleared to proceed and notified that no further action would be taken. Only 4.4% of notifications were called in for further scrutiny. This ratio is broadly consistent with previous years.
To mitigate risks to national security, the government made nine final orders in this reporting period. Interventions spanned a diverse range of investment origins, with final orders involving acquirers associated with countries such as the UK, China, Germany, and the United States. Because acquisitions often involve multiple acquirers, a single transaction may be associated with more than one origin of investment.
Aside from the UK, the highest number of final orders involved acquirers associated with China (three final orders).
Notably, of the final orders made, only one acquisition was blocked entirely; the remaining final orders allowed the acquisitions to continue with conditions.
The NSI Act applies equally to all acquirers regardless of origin, ensuring a proportionate, evidence-based and robust defence of UK national security.
The largest number of final orders related to the Advanced Materials, Data Infrastructure, and Military & Dual Use areas of the economy. Acquisitions related to Defence, Critical Suppliers to Government, and Military & Dual Use featured prominently among acquisitions called in for detailed assessment.
This year, the government announced plans to refine mandatory investment screening rules to provide greater clarity for businesses. These updates follow a comprehensive 12-week consultation with industry leaders, legal experts, and trade bodies.
The refinements will keep the mandatory notification rules up to date, including removing “off-the-shelf” AI from mandatory screening, focusing instead on firms that develop or modify advanced AI, while safeguarding critical infrastructure by bringing major water-operating companies into scope, among other changes. Semiconductors and critical minerals will move into their own dedicated, clearer categories, separating them from the Advanced Materials section.
The government intends to lay secondary legislation in Parliament to implement these updates and to exempt other lower-risk activities such as internal reorganisations from mandatory notification requirements, ensuring the UK’s screening system remains both pro-growth and robust against evolving national security threats.