The Cyber Security and Resilience Bill is a UK government initiative introduced in 2025 to modernize and strengthen the country’s cyber defences. It aims to protect critical infrastructure, public services, and the broader digital economy from increasing cyber threats, including those from state actors and criminal groups.
Key Objectives of the Bill
- Expand the scope of regulation – It broadens the existing Network and Information Systems (NIS) Regulations to include more digital services and supply chains, especially those critical to national infrastructure like healthcare, energy, transport, and water.
- Include Managed Service Providers (MSPs) – Due to their access to clients’ IT systems and data, MSPs will now fall under the scope of the law. This affects an estimated 900–1100 providers.
- Strengthen regulatory powers – Regulators will have enhanced authority to conduct proactive investigations and enforce compliance.
- Increase incident reporting – Organisations in scope will be required to report cyber incidents more promptly and thoroughly.
- Align with EU standards – The Bill aligns with the EU’s NIS 2 Directive, ensuring consistency with international cybersecurity frameworks.
Why It’s Needed
The UK has seen a rise in cyberattacks targeting hospitals, universities, local authorities, and government departments. The Bill addresses outdated laws and aims to close gaps in the current regulatory framework to better protect essential services and the economy.
Impact on Small Businesses in CNI Supply Chains
Increased Regulatory Oversight:
Small businesses that provide digital services or products to CNI sectors will now fall under the scope of the updated regulations. This includes:
- IT service providers
- Software vendors
- Data processors
- Cloud and managed service providers (MSPs)
These businesses will be required to meet **stricter cybersecurity standards**, even if they are not directly operating critical infrastructure.
Mandatory Cybersecurity Measures
Small suppliers will need to implement:
- Robust risk management practices
- Incident detection and response capabilities
- Regular security assessments and audits
- Supply chain risk assessments, including vetting their own suppliers
Stricter Incident Reporting
Businesses must report cyber incidents that could impact the services they support. This includes:
– Ransomware attacks
– Data breaches
– Service outages due to cyber threats
Failure to report in a timely manner could result in **fines or enforcement actions**.
Delegated Powers for Rapid Updates
The Bill allows regulators to **update requirements quickly** in response to emerging threats. This means small businesses must stay agile and continuously monitor for regulatory changes.
Support and Guidance
The government and the **National Cyber Security Centre (NCSC)** are expected to provide **guidance and toolkits** to help small businesses comply. However, the onus remains on businesses to ensure they are compliant.
What Small Businesses Should Do Now
- Assess your exposure – Identify if your services/products are used in CNI sectors
- Review contracts – Check if clients require compliance with the new regulations
- Invest in cybersecurity – Even basic improvements (e.g., MFA, endpoint protection, backups) can go a long way.
- Train staff – Human error is a major vulnerability—cyber hygiene training is essential.
- Engage with industry bodies – They often provide updates, templates, and support.
We Can Help
The Cyber Security and Resilience Bill represents a significant shift in the UK’s approach to cybersecurity. Particularly for small businesses in critical supply chains. By understanding the requirements and taking proactive steps, small businesses can not only comply with the new regulations but also enhance their overall security posture.
CTO can help you with all of this, as part of our first class IT Support, Cyber Security and Managed Services offering. Get in touch if you need to switch to a proactive IT provider.
