WIREDGOV

• The UK’s current sanctions regime is built for past threats and is unfit to address today’s complex global challenges;                                                                                            
• This paper calls for a modern, tiered sanctions system that can tackle new forms of aggression - from cyber-attacks to economic sabotage;
• By updating the legal definition of 'conflict,' the UK could take proportionate action against hostile actors;
• A smarter framework would distinguish between symbolic gestures and serious pressure, allowing for measured escalation when needed;
• Clear pathways for individuals and companies to disengage from hostile regimes would also make sanctions more effective and benefit the UK economy;
• This modern, flexible approach would strengthen the UK’s global influence and reassert its leadership in international sanctions policy.

In its latest report co-authored by former Lord Chancellor Sir Robert Buckland KBE KC, the Adam Smith Institute proposes a tiered sanctions regime that allows for flexible, proportionate responses to a range of hostile activities. The system would differentiate between cyber-attacks, human rights abuses, economic sabotage, environmental harm, and political interference. 

This strategy would be strengthened by a new legal definition of ‘conflict’ which would allow the UK to distinguish between different levels of threat and take proportionate action against both state and non-state actors. Greater precision would enable more strategic and effective policymaking.

To maximise the impact of the UKs sanctions regime, the paper also recommends managing frozen state assets through custodial arrangements rather than permanent confiscation - redirecting funds to lawful humanitarian or reconstruction efforts. It also calls for legally robust and clear off-ramps for individuals and firms that withdraw from sanctioned activities. Together, these measures would reinforce enforcement while maintaining the UK’s commitment to the rule of law.

As previous Adam Smith Institute research has shown, building an effective modern sanctions regime requires stronger institutional coordination and a clearer focus on economic disruption. But, most importantly, the UK must adopt a tiered framework that distinguishes between varying levels of threat. This would modernise foreign policy to reflect the complex and unstable realities of today’s world, strengthening the UK’s foreign policy and global influence. 

Sir Robert Buckland KBE KC, former Lord Chancellor and paper author, said:

“The time is ripe for the enhancement and clarification of the legal basis for sanctions regimes, bearing in mind current experience. If we are to effectively combat authoritarian regimes that pose an immediate threat to our freedoms, then we need to think deeply about the purpose of sanctions and work now to extend their reach.”

Maxwell Marlow, Director of Public Affairs at the Adam Smith Institute, said:

“Britain’s sanctions regime is stuck in the past - designed for an era of tanks and trenches, not cyber warfare and political interference. We desperately need a smarter, more flexible system that matches 21st-century threats with 21st-century tools. Without change, the UK risks leaving itself unable to fend off foreign threats.”

Notes to editors:  

For further comments or to arrange an interview, contact press@adamsmith.org | 0758 477 8207.

The full paper is available here. 

The Adam Smith Institute is one of the world’s leading think tanks. It is ranked first in the world among independent think tanks and as the best domestic and international economic policy think tank in the UK by the University of Pennsylvania. Independent, non-profit and non-partisan, the Institute is at the forefront of making the case for free markets and a free society, through education, research, publishing, and media outreach.