Cyber Security and Resilience (Network and Information Systems) Bill (Seventh sitting) Debate

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Department: Department for Science, Innovation & Technology

Cyber Security and Resilience (Network and Information Systems) Bill (Seventh sitting)

Lincoln Jopp Excerpts
Tuesday 24th February 2026

(1 day, 9 hours ago)

Public Bill Committees
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Ben Spencer Portrait Dr Spencer
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That information is concerning. I entirely agree with my hon. Friend that information sharing is important when dealing with evolving threats.

Lincoln Jopp Portrait Lincoln Jopp (Spelthorne) (Con)
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I am grateful to the shadow Minister for giving way, if only to repeat what my hon. Friend the Member for Bromsgrove has just said. The Minister and the Government Whip were both on their phones, and I do not think they were fully concentrating on the fact that M&S has reported that it got more information about its information loss from the FBI than from our own agencies. I repeat that for the record so that the Minister has a chance to concentrate on that very important information.

Ben Spencer Portrait Dr Spencer
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I thank my hon. Friend for his intervention, which is more for the Minister and the Government Whip’s benefit than mine.

Properly established ISACs will not only increase real-time awareness of cyber-risks and mitigations, but could also alleviate some of the burden on regulators in terms of sector-specific intelligence analysis. Industry feedback and experience from the adoption of the Network and Information Systems Regulations 2018 indicate that sectoral regulators are unlikely to have the capacity to assist with intelligence sharing in relation to real-time cyber-risks.

We know from the sectoral regulators’ oral evidence that building sufficient capacity for effective regulatory oversight is a challenge. Where we have models for sector-led and market-led good practice in hardening cyber-resilience, we should look at how it can be rolled out further. Seeing more of these organisations emerge could even lead to broader adoption beyond NIS-regulated areas to other industries. ISACs have the potential to become integral nodes in improving whole-of-society cyber-resilience, and it is an approach called for by many cyber industry stakeholders. I therefore commend new clause 4.

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Ben Spencer Portrait Dr Spencer
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I beg to move, That the clause be read a Second time.

The National Audit Office’s 2025 report on cyber-resilience highlighted that Government Departments and agencies are among the weakest links in the UK’s cyber-security ecosystem and lack a credible plan to become cyber-resilient in the short to medium term. The Government play a key role in the management of certain critical national industries, but the continuing cyber-security vulnerabilities in the IT systems used to operate CNI expose the UK to the threat of serious attacks that could undermine national security and the economy.

That is not to mention the risk to enormous amounts of highly sensitive data held on Government systems. Dr Sanjana Mehta of ISC2 said in her oral evidence that the Department for Work and Pensions administered £288 billion of benefits over the past year, with more than 23 million people claiming benefits of some kind. That activity involves processing vast amounts of personal, medical and financial data, which presents rich pickings for malicious actors.

The feedback from industry stakeholders, many of whom are being asked by the Government to take on onerous security and reporting obligations under this Bill, echoes those concerns regarding Government cyber-immaturity. There is a strong sentiment that the Government should be leading by example, as Chris Anley of the NCC Group commented in the Committee’s oral evidence sessions.

In view of the growing risk posed to UK cyber-security by hostile state actors, by their affiliates and by criminal gangs, improving Government cyber-security is urgent. It is clear from the NAO’s findings and other recent reports that Government Departments have lacked the clear goals and necessary accountability to incentivise tackling this significant challenge.

In his letter of 19 February to members of the Committee, the Minister said:

“Government will be held to equivalent cyber security requirements that we expect of the essential and digital services in scope of the Cyber Security and Resilience (Network and Information Systems) Bill.”

But as matters stand, there are no effective legal mechanisms for accountability to Parliament on increasing Government cyber-resilience to the standards necessary to meet the intensifying threats facing our Government Departments and agencies.

New clause 5 would compel the Secretary of State to make yearly reports to Parliament setting out the Government’s progress towards meeting the recommendations of the National Audit Office’s 2025 report on Government cyber-resilience and towards meeting the standards they set themselves in their recent cyber action plan. Where necessary, the Secretary of State would have to account for failures to meet deadlines for implementation and issue a new plan to achieve compliance.

In moving this new clause, I am aware of the challenges that successive Governments have faced in driving up cyber-resilience standards. There are serious practical and budgetary obstacles that can impede progress, such as the vast amount of legacy IT equipment that remains in use, which is inherently more vulnerable to attack. Moreover, there is the ongoing problem of recruiting highly skilled cyber-security professionals to work in these roles, given the competition in the recruitment market and constraints on public sector salaries. Illustrative of that challenge is the worrying statistic, cited by Chris Anley of the NCC Group, that

“almost a third of cyber-security posts in Government are presently unfilled”.––[Official Report, Cyber Security and Resilience (Network and Information Systems) Public Bill Committee, 3 February 2026; c. 24, Q29.]

None the less, the Government have now put in place a plan that they consider achievable, and they should be held to account for it. The new clause creates a mechanism for that much-needed accountability.

Lincoln Jopp Portrait Lincoln Jopp
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Does the shadow Minister agree that if Labour Members vote against new clause 5, it would be a classic case of “Do as I say, not as I do”? If they are happy to go on the record as voting it down on that basis, does the shadow Minister agree there would be an element of what is politely termed “variable geometry”? The more direct word is “hypocrisy”.

Ben Spencer Portrait Dr Spencer
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My hon. Friend is absolutely right.

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Kanishka Narayan Portrait Kanishka Narayan
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I thank the hon. Member for Brecon, Radnor and Cwm Tawe for his new clause, which seeks to require a consultation on the resourcing and capabilities of regulators and regulated entities, assessment on whether additional Government support is needed, and a report on the findings. I reassure the hon. Gentleman that the Bill was developed in close collaboration with regulators and industry to ensure that regulators have the right information and tools to implement it.

The Bill already requires the Government to produce two regular reports to monitor the effectiveness of the legislation, and those would naturally include reviews of whether resourcing and capability were impacting on the effectiveness of the regime. The first of those is the annual report on regulator activities in relation to the statement of strategic priorities. The second is the report on the operation of the legislation, which must take place at least every five years.

Lincoln Jopp Portrait Lincoln Jopp
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While we are talking about resources and the application of the Bill, I raise with the Minister that, on page 102 of the impact assessment, it states that the going rate for a contract lawyer is £34 an hour. To my mind, that is out by a factor of probably 10. In the 10 days since our last sitting, has the Minister had a chance to re-examine the impact assessment and discover whether that was a genuine error? That number gets multiplied many times in the impact assessment. Has he had a chance to look into that?

Kanishka Narayan Portrait Kanishka Narayan
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The hon. Member has made that point a couple of times before. I am happy to write to him about the calculations, so that he is able to understand the survey and the significant uplift on which the figures are based.

In response to the hon. Member for Brecon, Radnor and Cwm Tawe, given that the two reports can already include the topics addressed by his new clause, adding another report would risk confusing their purposes and increasing administrative burdens on those involved unnecessarily. The Government will not hesitate to adapt our support offering based on the findings of those reports. That will include using our flexible mechanisms—for example, updating our guidance to regulators, the statement of strategic priorities and the code of practice. Beyond that, we will continue to engage with regulators as the Bill is implemented, and consider whether any other means of improving regulators’ and regulated entities’ resourcing and capabilities are necessary and proportionate. For those reasons, I ask the hon. Member to withdraw his new clause.

Question put, That the clause be read a Second time.

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Together, the new clauses would create leadership responsibility, continuous assessment and improvement—
Lincoln Jopp Portrait Lincoln Jopp
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Will the hon. Member give way?

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Lincoln Jopp Portrait Lincoln Jopp
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I am a little confused—which is easily done, I hasten to add. The new clause says:

“The management body may be held accountable for failures by the body to comply with duties relating to the security and resilience of its network and information systems.”

Does the hon. Member not think that the directors of companies are already responsible and accountable for their companies? Why does the state need to tell them more about those responsibilities?

David Chadwick Portrait David Chadwick
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I think this once more comes down to state capacity and how we see the state’s role. Clearly there needs to be an expansion of the state’s powers—that is why the Bill was introduced—to mandate in writing various requirements of the companies that provide the critical infrastructure upon which our country relies. The hon. Member will remember the numerous witnesses who told us that board accountability was crucial. Some told us that in public and some in private. They are the people who are doing this job, and whom the Government are asking to do this job. That is why we should listen to them and why we will press the new clauses to a vote.