The Cabinet Office has published the National Security and Investment Act Annual Report, showing that 95.6% of reviewed notifications were cleared without further action. The government blocked or imposed conditions on nine transactions between April 2025 and March 2026.
The report was published on 14 July 2026 and covers the operation of the UK’s investment screening system during the previous financial year. The government received 1,324 notifications, representing a 16% increase from the 1,143 submitted in the preceding reporting period.
Transactions involving acquirers associated with the UK, China, Germany, the United States and the United Arab Emirates were among those considered. Acquisitions across 16 of the 17 areas subject to mandatory notification were selected for more detailed assessment.
UK Investment Screening Notifications Rise 16%
The National Security and Investment Act allows the government to examine acquisitions that may present risks to national security. During the reporting period, the Investment Security Unit received 1,324 notifications, 16% more than in the previous year, while acquisitions remained subject to the statutory review timetable.
The government said the screening system allows inward investment to continue while providing powers to intervene in individual transactions. Acquirers are assessed under the legislation regardless of the country with which they are associated.
- Reporting period: The annual figures cover acquisitions reviewed between April 2025 and March 2026.
- Notifications received: Businesses and investors submitted 1,324 notifications during the year.
- Sector coverage: Call-in notices were issued across almost all areas subject to mandatory notification.
Notifications and Review Outcomes
The government reviewed 1,220 notifications during the year and cleared 95.6% without taking further action. The remaining 4.4% were called in for additional scrutiny under the Act.
Decisions on whether to clear or call in all notified acquisitions were taken within the statutory review period of 30 working days. The proportion of cases selected for further scrutiny remained broadly consistent with previous reporting years.
Investment Screening Outcomes Table
| Indicator | Recent Movement | Context |
|---|---|---|
| Notifications received | 1,324 | Up 16% year on year |
| Notifications reviewed | 1,220 | Completed during the period |
| Cleared cases | 95.6% | No further action taken |
| Called-in cases | 4.4% | Selected for further scrutiny |
| Call-in notices | 60 | Issued for detailed assessment |
Defence Leads Transactions Called In for Review
A total of 60 call-in notices were issued where the government considered that an acquisition required closer examination. These notices covered transactions connected with 16 of the 17 specified areas of the economy subject to mandatory notification.
Defence accounted for 47% of called-in acquisitions. Critical Suppliers to Government and Military and Dual-Use were each associated with 33%, although a single acquisition can fall within more than one area.
- Defence: Acquisitions in this area formed the largest share of cases selected for detailed review.
- Government suppliers: Transactions involving suppliers to public bodies featured prominently among called-in cases.
- Dual-use activity: Reviews included acquisitions involving goods or technology with civilian and military applications.
Final Orders and Investment Origins
The government made nine final orders to address identified national security risks. One acquisition was blocked completely, while eight were permitted to continue subject to conditions.
Final orders involved acquirers associated with the UK, China, Germany and the United States. China was associated with three final orders, the highest number involving acquirers outside the UK.
Because some acquisitions involve more than one acquirer, an individual transaction may be linked to several investment origins. The government said the Act applies equally to acquisitions regardless of their geographical association.
Final Order Outcomes
| Measure | Outcome | Context |
|---|---|---|
| Final orders | Nine | Issued to address security risks |
| Blocked acquisitions | One | Transaction prevented entirely |
| Conditional approvals | Eight | Transactions allowed with conditions |
| China-associated orders | Three | Highest total outside the UK |
Advanced Materials and Data Infrastructure Face Intervention
The largest number of final orders related to Advanced Materials, Data Infrastructure, and Military and Dual-Use activities. These areas include businesses and assets that may require safeguards when ownership or control changes.
Defence, Critical Suppliers to Government, and Military and Dual-Use also appeared frequently among acquisitions called in for assessment. The figures reflect the areas reviewed and do not indicate that every notified transaction within those sectors required intervention.
UK Plans Changes to Investment Screening Rules
The government plans to refine the mandatory notification rules following a 12-week consultation with industry representatives, legal experts and trade bodies. Secondary legislation is expected to be laid before Parliament to implement the proposed changes.
The planned revisions would remove off-the-shelf artificial intelligence from mandatory screening while retaining coverage for businesses that develop or modify advanced AI. Major water-operating companies would be brought within scope, while semiconductors and critical minerals would receive separate categories instead of remaining within Advanced Materials.
Lower-risk activities, including some internal company reorganisations, are also expected to be exempted from mandatory notification. The government said these changes would clarify the requirements for businesses while maintaining screening of acquisitions that may affect national security.
Government Response
Darren Jones, Chief Secretary to the Prime Minister 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 annual report records increased use of the National Security and Investment Act notification process during 2025–26. Most reviewed acquisitions proceeded without additional scrutiny, while a smaller group received detailed assessment or binding intervention. Planned rule changes will alter the treatment of artificial intelligence, water companies, semiconductors, critical minerals and internal reorganisations when the government introduces the required secondary legislation.
Sources: Cabinet Office and The Rt Hon Darren Jones MP.
Prepared by Ivan Alexander Golden, Founder of THX News, an independent news organisation delivering timely insights from global official sources. Combines AI-analysed research with human-edited accuracy and context.
