Ministers have been forced to make changes to a controversial piece of legislation after fears were raised that it could have a “chilling” impact on journalism and could deter investment.

The Home Office has faced criticism both from media groups and from peers concerned about the reach of the National Security Bill, which is designed to protect the UK from foreign spies.

It has been reported that Home Secretary Suella Braverman ordered that the Bill be reviewed because of concerns about its impact on journalism.

The Government responded on Thursday by publishing amendments to the draft legislation, with the aim of tightening its scope.

Security minister Tom Tugendhat said the changes would “focus the Bill on the most serious threats we face”.

The amendments include measures to protect journalistic freedoms by clarifying the scope of offences and being clearer that the law “will protect all legitimate activity”, the Home Office said.

Officials said the language would be amended to make it clearer that it would need to be proved what an individual knew, eliminating the possibility that a reporter acting unwittingly could be in breach of the law.

It comes after Telegraph Media Group deputy chairman, Lord Black, told peers last month that the legislation could have a “chilling impact on investigative journalism” due to the “heavy sentences involved” for those falling foul of the law’s spying terms.

The National Media Association, a group representing the sector, said it would “consider carefully” the planned changes.

The organisation’s chief executive Owen Meredith said: “We welcome the Government’s recognition of concerns with the National Security Bill and how, as currently drafted, it risks criminalising journalists for legitimate reporting; contrary to stated intentions.

“We should not allow a situation where the public is deprived of knowing vital information because legislation unwittingly chills the media.

“We will therefore consider carefully how the Government’s amendments tabled yesterday seek to address those concerns and if they provide a workable solution, or if further amendments are needed to provide clarity.”

Another area of concern with the National Security Bill was with its Foreign Influence Registration Scheme (FIRS).

As currently drafted, the two-tier scheme would require individuals to disclose within 10 days who they are in an arrangement with, what activity they have been directed to undertake, and when the arrangement was made.

Failure to register the activity would be a criminal offence, with offenders facing a fine or up to two years in prison.

During a debate in January, Liberal Democrat peer Lord Clement-Jones said the registration scheme was “far too broad in its application”.

“I think it will be highly damaging to UK research and development, inward investment and British interests around the world,” he said.

As part of amendments laid in the House of Lords, the Home Office has responded by “focusing” the scheme on foreign powers, while keeping the threat of criminal prosecution and the possibility of applying sanctions.

The revised political tier will now require the registration of “political influence activities” where they are carried out within the UK at the direction of any foreign power, the department said.

An enhanced tier of registration, allowing the home secretary to single out a foreign power or closely aligned entity for registration, will remain part of the package, with harsher criminal punishments in place for those failing to adhere.

Mr Tugendhat said: “This Government will do everything in its power to protect the British people from hostile foreign activity and keep our country safe.

“The National Security Bill will play a critical role in this.

“It will give our intelligence agencies the tools they need to protect us and contains important new measures to fight back against hostile activity from foreign states.

“These amendments will focus the Bill on the most serious threats we face.”

A final change made will include amending the Serious Crime Act to provide legal protections to the UK intelligence community and armed forces.

Ministers plan to add a defence where an individual can say their actions were necessary for the proper exercise of a function of their intelligence or military role.

The Bill is due to have its report stage in the Lords next week and will return to the Commons once peers have completed its third reading.