The UK government approved the overwhelming majority of investment deals screened on national security grounds over the past year, with fewer than one in 20 transactions requiring an
in-depth investigation, according to new official figures.
The latest annual report on the National Security and Investment (NSI) Act shows that 95.6% of the 1,220 investment notifications reviewed between April 2025 and March 2026 were cleared without further action, as ministers sought to balance economic growth with the protection of sensitive industries.
A total of 1,324 notifications were submitted during the reporting period, up 16% from 1,143 the previous year, reflecting increased investment activity. Despite the higher workload, the government said every notified acquisition was either cleared or referred for further review within the statutory 30-working-day deadline.
Only 60 transactions – representing 4.4% of those reviewed – were "called in" for a detailed national security assessment. Of those, the government imposed conditions or intervened in nine cases. Just one acquisition was blocked outright, while the remaining eight were allowed to proceed subject to legally binding safeguards.
The reviews covered investments linked to a wide range of countries, including the UK, China, Germany, the United States and the United Arab Emirates. China was associated with three of the final intervention orders, although ministers stressed that the screening regime applies equally to investors regardless of nationality and is based solely on national security concerns.
Defence-related acquisitions accounted for nearly half of all transactions subjected to detailed scrutiny, making it the sector most frequently reviewed. Deals involving critical suppliers to government and military or dual-use technologies also featured prominently, each accounting for around one-third of called-in cases. Some acquisitions fell into more than one sensitive category.
The largest number of final intervention orders concerned businesses operating in advanced materials, data infrastructure, and military and dual-use technologies.
Chief Secretary to the Treasury Darren Jones said protecting national security remained the government's foremost responsibility while ensuring Britain continued to attract investment.
"The first duty of any government is to keep our nation safe," he said. "The 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 NSI Act, which came into force in 2022, gives ministers powers to examine and, where necessary, restrict or block acquisitions that could pose risks to national security. Businesses operating in 17 designated sensitive sectors are required to notify the government of certain transactions before they are completed.
The government also confirmed plans to update the mandatory screening regime following a 12-week consultation with businesses, legal experts and industry groups.
Among the proposed changes, standard "off-the-shelf" artificial intelligence products will no longer require mandatory notification, with scrutiny instead focusing on companies developing or modifying advanced AI systems. Major water operating companies will be added to the list of sectors subject to mandatory screening, while semiconductors and critical minerals will become separate categories to better reflect their strategic importance.
Ministers also intend to exempt lower-risk activities, such as internal corporate reorganisations, from mandatory notification requirements in an effort to reduce regulatory burdens while maintaining safeguards against emerging national security threats.
