National Security (State Threats) Act 2026

The National Security (State Threats) Act 2026, which received Royal Assent on 8 July 2026, significantly bolsters the United Kingdom's legal framework against hostile state activity. Building upon the foundational National Security Act 2023, this new legislation introduces critical 'proscription-like' powers for the Home Secretary to designate organisations and individuals engaged in threat activity linked to foreign powers. It creates new criminal offences, including assisting or receiving payment from designated entities, with severe penalties of up to 14 years imprisonment. The Act is a direct response to the evolving scale and complexity of state threats, such as espionage, sabotage, disinformation, and cyber operations, particularly those conducted through proxy groups, aiming to provide law enforcement and intelligence agencies with enhanced tools to deter, detect, and disrupt such activities. For legal practitioners, the Act necessitates a thorough understanding of expanded definitions of hostile activity, new compliance obligations, and the potential for increased scrutiny of international dealings.

The United Kingdom has, with the enactment of the National Security (State Threats) Act 2026 (the "2026 Act"), further solidified its legislative defences against the multifaceted and evolving challenges posed by hostile foreign states. Receiving Royal Assent on 8 July 2026, this landmark legislation is a crucial development in the UK's ongoing efforts to safeguard its national security, democratic institutions, and economic prosperity from a range of state-backed threats. It represents a strategic enhancement of the powers available to law enforcement and intelligence agencies, designed to address the increasing sophistication and deniability of state-sponsored hostile activities, including those carried out through proxy groups.

This article provides an overview of the 2026 Act, examining its core provisions, its relationship with existing national security legislation, and its practical implications for legal professionals. The Act is poised to significantly impact individuals and entities operating in sectors vulnerable to foreign interference, requiring a renewed focus on compliance, due diligence, and risk management. Understanding the expanded scope of proscribed activities and the Home Secretary's new designation powers will be paramount for advising clients navigating the complex landscape of national security law.

The 2026 Act does not emerge in a vacuum but rather builds upon a robust, albeit continuously adapting, framework of UK national security legislation. Historically, the Official Secrets Acts, particularly the Official Secrets Act 1989, have served as cornerstones for protecting sensitive government information and countering espionage. However, the digital age and the rise of sophisticated hybrid warfare tactics necessitated a more comprehensive approach. This led to the enactment of the National Security Act 2023 (the "2023 Act"), which introduced a suite of modern offences targeting espionage, sabotage, foreign interference, and the provision of material assistance to foreign intelligence services. The 2023 Act also established a Foreign Influence Registration Scheme (FIRS) to enhance transparency around certain arrangements and activities directed by foreign powers.

Despite the significant advancements made by the 2023 Act, the government identified persistent and growing threats from foreign states, often employing proxy groups to obscure their involvement in hostile activities such as arson, sabotage, physical violence, and cyber attacks. The need for further legislative tools, particularly those akin to the proscription powers under the Terrorism Act 2000, became apparent to effectively counter these evolving threats. The Terrorism Act 2000, for instance, grants the Home Secretary powers to proscribe organisations concerned in terrorism, making membership or support for such groups a criminal offence. The 2026 Act seeks to extend a similar deterrent and disruptive capability to the realm of state threats, acknowledging the distinct but equally damaging nature of hostile state activity.

The National Security (State Threats) Act 2026 introduces a pivotal new power for the Home Secretary: the ability to designate bodies engaged in threat activity linked to a foreign power. This power is explicitly modelled on the proscription regime found within the Terrorism Act 2000, allowing for a more agile and targeted response to organisations acting at the behest of, or in the interests of, foreign states to undermine UK security or the safety of its communities. Such activities can encompass a broad spectrum, including attacks against specific communities, targeting of dissidents on UK soil, or cyber attacks on critical national infrastructure.

Crucially, the Act establishes new criminal sanctions applicable to these designated bodies and their proxies. It is now an offence to assist or receive payment from a designated organisation, thereby making it significantly harder for foreign states to conceal their involvement in hostile activities behind front companies or organised crime gangs. Individuals convicted under these new offences face substantial penalties, with sentences of up to 14 years imprisonment, reflecting the gravity with which the UK government views these threats. This legislative move aims to create a more challenging operating environment for hostile state actors and their facilitators, deterring and disrupting their operations within the UK.

The 2026 Act complements and strengthens the National Security Act 2023, which already provided new offences for espionage, sabotage, and foreign interference. While the 2023 Act focused on individual conduct and the Foreign Influence Registration Scheme, the 2026 Act extends the state's reach to target the organisational structures and networks that facilitate hostile state activity. This layered approach demonstrates a comprehensive strategy to counter both direct and indirect state threats. The interplay between these Acts will require careful interpretation, particularly regarding the scope of "foreign power condition" and "UK interests" as defined in the 2023 Act, and how these will apply to the designation process under the 2026 Act.

From a human rights perspective, the introduction of proscription-like powers will undoubtedly invite scrutiny. While national security is a legitimate aim for interfering with qualified human rights, such interference must be lawful, necessary, and proportionate in a democratic society. The Investigatory Powers Act 2016, for example, which governs surveillance powers, includes oversight mechanisms such as the Investigatory Powers Commissioner. It is anticipated that similar robust oversight and judicial review mechanisms will be crucial to ensure that the Home Secretary's designation powers and the associated criminal sanctions under the 2026 Act are exercised proportionately and in accordance with the Human Rights Act 1998 and the European Convention on Human Rights. Legal challenges are likely to test the balance between national security imperatives and the protection of civil liberties, particularly concerning freedom of association and expression.

The National Security (State Threats) Act 2026 marks a significant evolution in the UK's legal arsenal against hostile state activity, providing the government with enhanced powers to counter complex and deniable threats. Its introduction of designation powers and associated criminal sanctions, building on the National Security Act 2023, underscores a determined effort to protect national security, critical infrastructure, and democratic values. The Act's focus on proxy groups and the severe penalties for non-compliance signal a heightened risk environment for any entity or individual whose activities could be perceived as assisting foreign state-linked hostile actions.

For legal practitioners, the immediate implications are profound. Attorneys must advise clients, particularly those involved in international business, technology, defence, or sensitive research, on the expanded scope of prohibited activities and the potential for designation. Robust compliance frameworks, enhanced due diligence on foreign partnerships, and clear internal reporting mechanisms will be essential to mitigate legal and reputational risks. Furthermore, practitioners should closely monitor the development of guidance from government agencies and anticipate judicial interpretations of the Act's provisions, particularly concerning the exercise of designation powers and their interaction with human rights principles. The 2026 Act necessitates a proactive and informed approach to national security compliance.