UK unveils cyber security war chest after M&S and Co-op attacks
The UK government has launched a £16m war chest with the aim to accelerate growth in the country’s cyber security industry in the wake of high-profile attacks against the likes of M&S, the Co-op and Harrods in recent months.
Unveiling the funding, the Department of Science, Innovation and Technology (DSIT) said the cyber growth action plan will aim to turn Britain’s £13.2bn cyber sector into a central pillar of economic and national resilience.
The move, which forms part of the government’s broader ‘plan for change‘ industrial strategy, will focus on creating jobs, scaling start-ups and improving protection for vital public services.
The announcement comes as major UK businesses grapple with the fallout from recent cyber attacks which has acutely highlighted the financial and operational risks of a rapidly intensifying threat environment.
Funding to boost UK cyber security
At the heart of the government’s new strategy is £16m in investment, split across two flagship programmes aimed at translating cutting-edge research into real-world impact.
A total of £10m will go to ‘cyberASAP’, a government-funded initiative that helps turn academic research into commercial start-ups.
The new funding will aim to help create 25 more companies by 2030 and bring in a further £30m in external capital.
Meanwhile, £6m will be directed to ‘cyber runway’, a national accelerator pledging to support early stage companies in scaling their operations.
“Cyber security is essential to our economic strength and national resilience”, said cyber security minister Feryal Clark.
“Today’s announcement is backed by serious investment and shows we’re committed to making the UK a global leader in cyber innovation and protection”, he said.
Chancellor of the Duchy of Lancaster Pat McFadden added: “Recent cyber attacks show just how important it is to foster the development of the sector – delivering the double dividend of high-paying jobs and stronger national security”.
Alongside the funding boost, the government has commissioned economic review of the cyber sector, which will inform the forthcoming national cyber strategy due later this year.
“The UK cyber sector is successful and growing, but so too are the challenges”, said Professor Simon Shiu of the University of Bristol, who is leading the review.
Big tech and defence leaders to advise against a growing concern
As part of the new plan, the government has also relaunched its cyber advisory board, bringing together senior figures from defence and technology to help improve public sector cyber security.
Members include executives from BAE Systems, Santander, Amazon Web Services, Microsoft and Google DeepMind, who are all set to advise on how to defend critical public infrastructure and help secure government services.
The work will underpin the upcoming cyber resilience bill, which is to be introduced to parliament later this year.
The new plan aims to respond to growing evidence that cyber investment isn’t just a defensive measure, but a business opportunity.
According to new research from cyber security firm ESET, shared exclusively with City PM, UK businesses are generating an estimated £27bn in additional revenue annually from investments in cyber security.
Over half of firms surveyed said their turnover had increased directly because of improved cyber credentials, with many citing the ability to win new business and enter new markets as key benefits.
Retail, healthcare and public sector organisations have been among the hardest hit by cyber attacks in recent months.
Marks & Spencer recently disclosed that a cyber breach would wipe £300m off its profits this year – a year of its expected earnings – after it was forced to suspend online orders and deal with major disruptions.