This week the Government gained new powers to impose conditions on, block or reverse certain investments. No one could reasonably disagree with the intention behind the National Security and Investment Act, but its breadth and depth are striking - estimates suggest a fifty-fold increase in transactions scrutinised.

More broadly, it illustrates a tension in current Conservative thinking. With an ambitious policy agenda to deliver, the Government is reliant on mobilising private capital. However, criticism of investors has intensified and decisionmakers are emboldened to intervene, especially with voterfacing arguments that resonate in Red Wall seats. To navigate this tension during a time of record dealmaking, investors need to understand the political context, demonstrate how their investment dovetails with the Government's priorities, and strategically engage with policymakers. In short, they must talk the Government's own language on how investors help the communities in which they operate.

IAIN CARTER

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