Back in July 2024, the UK government announced its plans to bring a Cyber Security and Resilience Bill before parliament. The bill is designed to tackle the growing threat to the UK’s critical national infrastructure (CNI), such as water, power and healthcare.
Things have been pretty quiet ever since, beyond some theorising about what the bill might include by industry blogs and panel discussions. But, as of early April, we have movement! The Department of Science, Innovation and Technology (DSIT) has released its Cyber Security and Resilience Policy Statement, setting out legislative proposals.
Here’s everything we know about the upcoming Cyber Security and Resilience Bill and what it could mean for your business.
What are the legislative proposals?
Of course, there’s no guarantee that all of the measures in the following list will be enacted or that, if they are, they’ll have the same scope. We’ve got months of amendments in both the Commons and the Lords before we see the final bill early next year. However, this what has been sketched out.
1. Broader regulatory scope
The bill aims to broaden the scope of the 2018 NIS Regulations to include more organisations and suppliers. This would place stronger obligations on those deemed “critical” suppliers, like Managed Service Providers (MSPs) and those part of public sector or national infrastructure supply chains.
2. More power for regulators
Regulators would have greater powers to improve cybersecurity and resilience in the sectors they oversee. These powers could include:
- Technical standards: Establish clearer cybersecurity standards and requirements based on the National Cyber Security Centre’s (NCSC) Cyber Assessment Framework.
- Incident reporting improvements: Expanded criteria, faster (24-hour initial notification, 72-hour detailed report), streamlined reporting to regulators and the NCSC, and new transparency requirements, such as informing customers directly of significant incidents.
- ICO powers: Improved proactive information gathering powers for the ICO to better manage risks within digital services.
- Cost recovery: Regulators could recover the costs of oversight through fees, reducing the taxpayer’s burden.
3. A more flexible cyber framework
The proposals would give the government greater flexibility to update cybersecurity frameworks, as and when needed, without primary legislation.
This is a sensible approach, allowing regulators to become a little more agile in responding to new threats and trends. For example, this would allow the government to extend the framework to cover new sectors. In fact, we think it’s highly likely this will happen as the UK’s cyber infrastructure further matures.
4. Greater executive powers
The bill also seeks to grant the government much stronger executive powers to respond to cyber threats when necessary for national security. Essentially, this means that if an organisation subject to regulation isn’t addressing a cyber threat that could impact national security adequately, say, a supply chain attack involving critical infrastructure, the government could step in and force them to act.
What’s still under consideration?
As with any bill at this stage of the legislative process, some areas are still under consideration. The exact scope of the powers the Secretary of State could be granted is a live debate, due to obvious concerns about executive overreach. And, there are two other proposals still being ironed out.
Data centres regulation
The government is considering regulating data centres. This is due to their newly designated (and overdue) status as critical national infrastructure.
Any data centre with 1 megawatt capacity or more would likely be within scope of the regulations, unless they’re an enterprise data centre, in which case the threshold would be significantly higher (10 megawatt).
According to Raconteur, there are 224 such data centres, run by 68 operators, across the UK. The government expects 182 of them to fall in scope. So, if data centres are included, it’d be a major legislative change.
Statement of strategic priorities
The bill could also enshrine in law a commitment to publish a regular “statement of strategic priorities for regulators”. The thinking behind this is to create a unified and consistent approach to cybersecurity among UK regulators and ensure everyone is pulling in the same direction.
How will the Cyber Security and Resilience Bill affect MSPs?
If you run an MSP, the bill’s effect on your business will largely depend on its size and who it works with.
According to the government’s 2024 figures, there are 11,492 MSPs active in the UK. Of these, we estimate that between 1,500 and 1,700 MSPs are potentially within scope of the NIS regulations. However, up to 600 may already be captured under existing cloud provision to their customers.
That leaves around 900 to 1,100 large and medium-sized MSPs that may need to consider the impact of regulatory compliance with NIS.
Due to their size the 3,200 small MSPs and 6,600 micro MSPs operating in the UK are likely to be exempt from regulation. But if you lead a smaller MSP, that doesn’t necessarily mean the rules won’t impact you at all. You could still feel the effects due to standards embedded by larger competitors, or if you’re with a critically important sub-sector, such as defence.
What does the industry think of the proposals?
The industry has generally welcomed the announcement. Few within the cybersecurity sector disagree that our critical national infrastructure needs stronger defences. Or that any attempt to tackle the threat has to include the thousands of businesses that make up CNI supply chains.
Last year alone saw a ransomware attack on NHS pathology provider Synnovis that led to permanent damage to patients’ health, a data breach of payroll information at the Ministry of Defence, not to mention the revelations about Thames Water’s poor security.
Meanwhile, the NCSC reported 2024 was a record-breaking year for attacks on CNI. And, according to the 2024 Thales Data Threat Report, 93% of CNI organisations saw a rise in cyber-attacks over the last year, with 42% of those suffering a data breach.
Against this backdrop, despite the extra obligations it places on businesses, it only be seen as welcome and long overdue.
Did you know 59% of SMEs provide no mobile cybersecurity training to staff? Find out why this is a problem and what to do about it in our SME Mobile Threat Report.