The UK Cyber Security and Resilience Bill, introduced to Parliament in November 2025, strengthens cyber defences for critical infrastructure and digital services. While most SMEs are exempt from direct regulation, all businesses should prepare for the evolving threat landscape and potential supply chain obligations.
Annual cost of cyber attacks to UK businesses
Mandatory incident reporting window for affected entities
UK businesses affected by cyber breaches in the past year
The legislation updates the 2018 Network and Information Systems (NIS) Regulations to address modern cyber threats from ransomware, supply chain attacks, and state-sponsored actors. It expands coverage to include:
Most SMEs are exempt to minimize regulatory burden. However, you may be designated as a "critical supplier" or "relevant digital service provider" if:
Even if you're exempt, taking proactive steps now protects your business, builds client confidence, and positions you ahead of competitors. The bill's emphasis on supply chain security means larger clients will increasingly demand robust cybersecurity from their partners.
A practical, actionable checklist to strengthen your cyber resilience and ensure compliance readiness
Designate a senior individual responsible for overseeing compliance. This person should have direct access to executive leadership and coordinate with regulators. Even if you're a small team, assign clear ownership.
Action: Identify your compliance lead this week and brief them on the bill's requirements.
Determine if your business falls under the bill's expanded regulations. Most SMEs are exempt, but if you provide managed services, digital infrastructure, or supply critical sectors (healthcare, energy, transport), you may be affected.
Action: Use the NCSC Cyber Assessment Framework to conduct a self-assessment and document your findings.
Compare your current cybersecurity measures against the bill's standards. Identify vulnerabilities in areas like multi-factor authentication, patch management, vulnerability scanning, and threat detection.
Action: Schedule a comprehensive security audit to identify gaps and prioritize remediation.
The bill mandates reporting significant cyber incidents within 24 hours, with detailed reports due within 72 hours. Create clear plans for detection, containment, mitigation, and regulatory notification.
Action: Document your incident response plan and test it with a tabletop exercise this quarter.
Deploy systems to detect anomalies and potential threats in real-time. This includes endpoint detection, log monitoring, and security information and event management (SIEM) tools aligned with NCSC guidance.
Action: Review and upgrade your monitoring capabilities to enable proactive threat hunting.
Implement essential measures: multi-factor authentication (MFA) for all accounts, encryption for sensitive data, regular vulnerability scanning, robust backup solutions, and patch management processes.
Action: Prioritise MFA deployment across all systems and enforce strong password policies.
Review all vendors and partners for cybersecurity practices. The bill enables regulators to designate critical suppliers, requiring them to meet security standards. Ensure contractual obligations cover security and incident reporting.
Action: Create a supplier risk register and audit your top 5 critical vendors this month.
Human error remains a top cyber risk. Deliver ongoing cybersecurity training for all employees, with specialized sessions for IT teams on incident response, compliance requirements, and emerging threats.
Action: Roll out quarterly security awareness training, including phishing simulations.
The bill allows for swift updates via secondary legislation. Subscribe to NCSC alerts, GOV.UK notifications, and industry updates to stay informed on evolving compliance requirements and threat intelligence.
Action: Assign someone to monitor NCSC and GOV.UK channels weekly and brief leadership monthly.
Maintain documentation of your security measures, risk assessments, incident logs, and compliance activities. Regular internal audits help avoid penalties and position compliance as a competitive advantage.
Action: Establish quarterly compliance reviews and maintain an audit-ready documentation system.
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Implementation Timeline: The bill is expected to receive Royal Assent in 2026, with phased implementation. Some measures will take effect immediately, while others will be introduced via secondary legislation after consultation. We recommend starting preparation now to stay ahead of requirements.