Committee publication · Report · 4 February 2026 · HC 1666
14th Report - Toward a new doctrine for economic security: Government Response
From: Business and Trade Sub-Committee on Economic Security, Arms and Export Controls
Inquiry: UK economic security
Government response deadline: 4 April 2026
Summary
This is the government's response to the Business and Trade Committee's November 2025 report on economic security. The committee found the government has fully accepted only four of twenty-five recommendations, arguing the UK's economic security regime remains unfit for future threats. The government defends its Protect/Promote/Partner framework and existing institutional arrangements, while the committee contends this fragmented approach fails to match allied capabilities and leaves material risks unaddressed.
Key findings
- Government has fully accepted only 4 of 25 committee recommendations; committee disputes government claims that existing policies already address identified issues
- Committee criticises government's failure to adopt proposed strategic framework (the '6Ds': Diagnose, Develop, Diversify, Defend, Deter, Dovetail) as structured governing system rather than loose collection of initiatives
- Government rejected establishing cross-government Minister for Economic Security and new Office of Economic Security, citing sufficiency of current arrangements; committee argues this perpetuates fragmented approach
- Government will not publish clear articulation of sovereign capabilities required for UK economic security, disappointing committee's assessment of strategic necessity for industry investment planning
- Government rejected Economic Security Bill, relying instead on patchwork of existing legislation (NSI Act 2021, National Security Act 2023, Procurement Act 2023); committee warns this lacks coherent statutory framework versus EU and Japan approaches
Government position
The government partially accepts the committee's concerns about economic security governance. It acknowledges the importance of the issue and accepts the framing around Protect/Promote/Partner principles (aligned with EU and allies), but rejects structural reforms: refuses to create a dedicated Minister or Office of Economic Security, will not publish sovereign capabilities list, rejects an Economic Security Bill, and defends existing departmental structures as appropriately balancing vertical and horizontal coordination. On specific areas, government commits to: more forthright communication via Economic Security Advisory Service; continued supply chain resilience work through new Supply Chain Centre; ambitious Critical Minerals Strategy with specific targets (10% domestic production, 20% recycling, max 60% single-country reliance); and market-led rather than legislated approach to Software Security Code of Practice adoption. Government argues current fiscal and incentive frameworks are adequate and rejects updating Managing Public Money rules.
Tone
CriticalTopics
Key actors
Business and Trade Committee, Minister of State for Trade, Secretary of State for Business and Trade, Cabinet Office, Department for Business and Trade, National Cyber Security Centre, National Security Council, Competition and Markets Authority
Notable line
“Without clarity on which capabilities the Government judges to be strategically essential, neither Parliament nor industry can assess whether policy, funding, and regulation are aligned with the UK's long-term security interests …”
Key Quotes
“The chief fault in the Government's response is fundamental: economic security is the foundation of national security.”
“… the private sector cannot dovetail its activity with Government nor invest in the way required over the long term, when economic security policy is so unclear, so subject to short term change and when state machinery is so disjointed and confusing to navigate.”
“… without stronger, clearer cross- Government co-ordination, the approach to economic security will remain fragmented, and Parliament and industry are left without a clear picture of how the system functions as a whole.”
“Without these elements, the UK's approach remains reactive, focused on adaptation after pressure has been applied rather than deterrence before it occurs.”
“In an era of rising geo-economic tension, the UK is at risk of becoming the weak link in Western economic security defences.”
“Our approach ensures a consistent approach to economic security across different sectors and markets, while balancing competing priorities.”
“… the current geopolitical landscape and the interconnected nature of our economy require a dynamic and agile response from the whole of government and cannot be the responsibility of one department.”
Source · parliament.uk record ↗