The UK has taken a high stance against foreign ownership of British media.

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The UK is considering doubling proposed limits on foreign state ownership of the country’s news media amid concerns that setting the standard too low will unnecessarily harm trade in the media industry.

A Labor government could allow a stake of up to 10 percent, significantly higher than the 5 percent level recommended by the previous Conservative administration, people familiar with the matter said.

In March last year, the Tories changed a law that would have banned foreign ownership of UK news organizations for the first time, a move designed to prevent a takeover of the Telegraph newspaper by United Arab Emirates-backed US investors.

Ministers intend to introduce exemptions from the ban for small stakes under certain limits, particularly in listed media companies, sovereign wealth funds and government pension funds. Consultation on setting the 5% rate has been held as the pace continues as Labor ousts the Tories in July’s UK general election.

One person familiar with current government thinking described the 10 percent as a “sensible” level, adding: “It’s all about finding the balance to allow deals to be done without any editorial control or influence from foreign countries.”

The Department for Digital, Culture, Media and Sport said: “We have not made any final decisions on the status of ‘state investors’ in the new foreign newspapers regime. We are still considering the consultation responses and will make an announcement in due course.

The Telegraph still has no permanent owner after the Barclays family lost control of the company over unpaid bank debts, but an attempt to buy the group by RedBird IMI has been blocked by a foreign ownership ban. RedBird IMI is a partnership between US fund manager Redbird Capital and Abu Dhabi-owned media investment company IMI.

People close to the sale said RedBird Capital could still take a stake in Telegraph through its partnership with IMI.

UK media groups have privately raised concerns with the government that setting the entry threshold too low would prevent them from tapping into funding from cash-rich governments in the Middle East. When the Telegraph first goes on sale in 2023, for example, The owners of the Daily Mail have discussed About cooperating with Qatari investors on tenders.

Media executives are concerned that the law will affect government pension funds, which are shareholders in listed media companies, as are the vast Norwegian, Canadian and Australian funds.

The decision on where to set the Labor ownership threshold could be controversial. Last year there was a heated debate among MPs about the risks of allowing foreign governments to influence the UK media.

MPs from both major parties were critical of Redbird’s IMI bid, as were executives at the Telegraph itself. Among anxious Tory MPs, a major concern is the prospect of overseas takeovers of right-wing broadcasters seen as influencing their party’s leadership race.

The sale of Telegraph itself has led to intense scrutiny of press freedom in Abu Dhabi, straining relations between Britain’s biggest investor, the United Kingdom, and the United Arab Emirates.

Emirati officials have expressed dismay at comments made by several British politicians about their kingdom in connection with the proposed telegraph deal. Former Tory leader Sir Iain Duncan Smith is among the MPs who say the UAE’s involvement raises “security concerns”, despite the defense relationship between the two countries.

Prime Minister Sir Keir Starmer traveled to Abu Dhabi last month in hopes of rekindling ties.