UK establishes new agency to counter state-sponsored espionage

MI5 will oversee the new National Protective Security Authority

The UK government has announced a new security agency as part of its efforts to help organisations defend themselves against potential national security risks, such as espionage, terrorism and state-sponsored actors.

The National Protective Security Authority (NPSA) will be supervised by domestic counter-intelligence and security agency MI5. The new body will collaborate closely with others, like GCHQ's National Cyber Security Centre (NCSC) and the National Counter Terrorism Security Offices, to offer comprehensive security advice.

The NPSA's primary objective is to provide businesses and other entities with guidance on managing industrial espionage. To do so, it will develop content and advice to help organisations understand the array of security risks they face.

The NPSA will specifically offer guidance on how to conduct business in China, deal with Chinese companies, and procure equipment from companies based in the country.

Additionally, the NPSA will offer counsel on takeovers in "sensitive" industries, like Chinese-owned Nexperia's acquisition of the Wales-based Newport Wafer Fab (NWF).

"Science, technology and academia are as much on the front lines of national security as the UK's critical national infrastructure," said security minister Tom Tugendhat.

"We know that hostile actors are trying to steal intellectual property from UK institutions to harm our country. The National Protective Security Authority will play a crucial role in helping businesses and universities better protect themselves and maintain their competitive advantage."

MI5 director general Ken McCallum has previously highlighted the rising danger espionage presents to organisations, particularly originating from China.

The Russian government is also recognised for being particularly active in this domain, employing comparable techniques to undermine individuals of interest for their intelligence objectives.

The NPSA says it will deliver its advice in a way that is "accessible and informative" and can be easily understood and utilised by a wide range of organisations.

The news on NPSA was announced as part of the Government's 2023 Integrated Review Refresh (IR23), published on Monday.

The commissioning of IR23 was aimed at addressing the growing geopolitical threats, ranging from Russia's illegal invasion of Ukraine to China's economic coercion and the intensifying competition between states.

The initial IR report identified these threats but they have escalated over the past two years, posing significant implications for the security and economic well-being of the British people.

The new report outlines several key priorities to address these threats directly.

Additionally, IR23 also includes plans to allocate an extra £5 billion of funding to the Ministry of Defence and aims to increase the UK's defence spending to 2.5% of gross domestic product over the long term.