In a striking admission of regulatory shortfall, the Business Secretary has stated he would have vetoed the foreign acquisition of a major UK technology company, citing a gap in the nation's ability to protect critical digital infrastructure. Speaking to the Commons Select Committee, the minister revealed that current legislation lacks the teeth to scrutinise deals that threaten national security, particularly in the quantum computing and AI sectors. We are talking about companies that hold the keys to our future economy and our defence networks.
The fact that this sale went through without a full security audit is a black mark on our system," he said. The revelation comes amid growing concerns over the influence of state-backed foreign entities in British tech.
The Business Secretary's comments signal a potential overhaul of the National Security and Investment Act, with a likely push for tighter controls on foreign ownership of firms developing cutting-edge technologies. Critics, however, warn that retrospective vetoes could deter foreign investment. The company in question, a leader in quantum encryption, was sold to a consortium linked to a rival nation last year.
No details of the sale price or the buyer's identity were disclosed in the session. The minister's intervention underscores a broader anxiety in Whitehall about the UK's digital sovereignty. As one tech analyst put it: "
We are sleepwalking into a scenario where our most advanced technology is no longer British. The question is, who owns the future?"
