(2 days, 14 hours ago)
Commons ChamberThe banking sector is obviously in the regulators’ scope for cyber-security, and there have been a number of outages, as my hon. Friend mentions. The general principle is that cyber-attacks no longer come in through the front door, but through third parties and suppliers. We have seen that, for example, in the recent incidents at Heathrow and in cloud outages with Amazon Web Services and other such companies. They are covered by their own regulations. As I said in answer to my hon. Friend the Member for Lichfield (Dave Robertson) about Jaguar Land Rover, those companies will not be in the scope of the Bill, but we hope that the financial services sector, which is a leader in cyber-security for a whole host of fairly obvious reasons, will take that forward.
The recent attacks on British icons such as Marks & Spencer and Jaguar Land Rover will loom large in people’s minds. Many Members across the Chamber have already mentioned them. Supply chains were thrown into chaos, with small businesses paying the price, which clearly shows the ripple effect across the economy—on other businesses, smaller businesses and patients, such as in the public service examples mentioned earlier—when one part of the system is attacked.
We are clear that all businesses—that covers financial services, Jaguar Land Rover, Marks & Spencer and others—must take immediate steps to protect themselves. That is why, in October, members of the Cabinet wrote to the FTSE 350 companies urging them to strengthen their defences by doing three things: first, to make cyber risk a board priority; secondly, to require suppliers to have a cyber essentials certificate; and thirdly to sign up to the early warning service. That was followed by a similar letter to entrepreneurs and small businesses in November with bespoke advice for smaller teams. We know that those actions work. Organisations with cyber essentials are 92% less likely to claim on cyber insurance than those that do not. Businesses know best how to protect themselves; we are not here to regulate for the sake of regulating.
Government are taking action too. As I announced this morning, the Government cyber action plan sets a radically new model for how Government will strengthen their cyber-resilience and is backed by over £210 million of investment. Government Departments will be held to standards equivalent to those set out in the Bill. That is why the public sector and the Government are not included in the scope of the Bill. The Government should not need to legislate for themselves; we should just get on with making sure that we are leading the charge and that the cyber action plan strengthens the Government’s cyber-resilience. [Interruption.] I do not know if that was an attempt at an intervention from the Opposition Front Bench, but I am happy to take it.
I welcome the Minister’s comments about the obligation on the public sector. However, I caution him that, in my experience, cyber-security is one of those things that Ministers talk about, but then other priorities overtake it. The advantage of legislative requirements is that they force Ministers to think about it. I urge the Minister to look at that point again as the Bill passes through Parliament. There is a case for putting more stringent requirements on the public sector in order to force Ministers’ minds on the point.
The right hon. Gentleman would have had some involvement in this when he was in government; indeed, the 2018 regulations came from the previous Government. We are all trying to make sure that we are catching up with the technology as quickly as it moves. He makes a very interesting point that I am very conscious of and happy to take away. We are determined to deliver the cyber-security action plan, which is backed by £210 million.
The actions that the previous Government took did not come to fruition in terms of their 2030 target, which is why we have refreshed the action plan and brought it forward with some significant cash. It is important for Ministers to take that forward. I hope that the right hon. Gentleman will hold us to account to ensure that we are fulfilling that promise in the cyber-security action plan. Public services, and indeed central Government, must take the leading role to show businesses that the approach to take is to ensure that all our systems are as secure as possible, not just on economic grounds, but for the people that we all seek to represent.