UK Economic Security Regime ‘Not Fit for Future,’ MPs Warn

Britain’s economic security apparatus is dangerously outdated and the government’s response to emerging threats remains woefully inadequate, according to a damning parliamentary report released by the Business and Trade Committee.

The cross-party committee concluded that existing frameworks can’t cope with modern challenges ranging from hostile state interference to critical supply chain vulnerabilities. And the government’s attempts to address these gaps have fallen short.

Critical Infrastructure at Risk

MPs highlighted serious concerns about the UK’s ability to protect key industries and infrastructure from foreign interference. The committee found that current legislation, including the National Security and Investment Act 2021, doesn’t go far enough to safeguard strategic sectors.

Britain’s reliance on imports for critical materials and technologies has created dangerous dependencies, the report stated. Yet ministers haven’t developed a coherent strategy to reduce these vulnerabilities or build domestic resilience in essential industries.

The committee examined how competitor nations have strengthened their economic security measures whilst the UK has lagged behind.

Government Response Falls Short

Parliamentarians criticised the government’s piecemeal approach to economic security, calling for a comprehensive strategy that coordinates across departments. The current system lacks clear leadership and accountability, they found.

„Our economic security regime is simply not equipped to handle the threats we face in 2025 and beyond,” a committee spokesperson stated. „The government needs to recognise the urgency of this situation and act decisively.”

The report pointed to specific failures in protecting sensitive technology and intellectual property. Britain’s universities and research institutions remain vulnerable to espionage and unwanted technology transfer, with insufficient safeguards in place.

Calls for Urgent Reform

The committee recommended sweeping changes to how Britain manages economic security risks. These include expanded screening powers for foreign investment, stronger export controls on critical technologies, and better coordination between intelligence agencies and business sectors.

MPs also called for significant investment in domestic capabilities for essential goods and services. The pandemic exposed how dependent Britain had become on foreign suppliers for basic necessities, yet little has changed since then.

The government now faces mounting pressure to overhaul its approach before critical vulnerabilities are exploited. With geopolitical tensions rising and economic warfare becoming more sophisticated, Britain can’t afford to maintain the status quo. The committee expects ministers to respond within two months with concrete plans for reform.