UK Government Publishes Plan to Boost Cyber Sector Growth

The UK government has unveiled a Cyber Growth Action Plan, designed to strengthen the nation’s cyber resiliency and technological capabilities following a spate of high-profile cyber incidents.

The initiative will be led by independent experts from the University of Bristol and Imperial College London’s Centre for Sectoral Economic Performance, who will set out recommendations for government action later this summer.

The review is set to cover the supply and demand of cyber goods and services such as protective monitoring and encryption, to understand opportunities for growth.

There will be an emphasis on new trends and technologies, such as AI and quantum, to help ensure the UK maintains a competitive edge in cybersecurity.

The report will feed into the UK government’s forthcoming National Cyber Strategy.

Government ministers hope the Action Plan will support the continued economic growth of the UK’s cybersecurity sector. The industry generated £13.2bn ($17.7bn) in annual revenue and supported over 67,000 jobs in 2024.

New Funding for Cyber Startups

In addition to the review, £16m ($21.5m) in new investment has been announced for two programs already in place to support cybersecurity SME and startup firms.

Over the next four years, £10m ($13.4m) will be invested in the CyberASAP program, which provides training support to academics to help them convert their research into technologies, products and services.

The program has already supported the creation of 34 spin-out companies, which have collectively raised over £43m ($57.8m) in investment.

The new funding aims to generate a further 25 spin-outs by 2030 and attract £30m ($40.3m) in additional investment.

The remaining £6m ($8m) will be allocated to the Cyber Runway project, which supports cyber startup and SMEs scale and access new markets.

Chancellor of the Duchy of Lancaster Pat McFadden commented: “Today’s investment will help to turn innovative ideas into successful businesses up and down the country, and the new research will support our mission to grow the economy.” 

Responding to High Profile UK Cyber Incidents

The announcement follows a spate of cyber-attacks on high profile UK retailers in late April and May – Marks & Spencer (M&S), The Co-op and Harrods.

These attacks, believed to be perpetrated by the Scattered Spider ransomware group, have resulted in significant service disruption and financial costs to the victims. For example, M&S was forced to suspend online orders, and the incident is expected to cost the company around £300m ($400m) in lost revenue and recovery.

During the UK government’s 2025 CYBERUK conference in May, McFadden warned that the wave of retail attacks should serve as a “wake-up call” for businesses across the country.

Commenting on the Action Plan, McFadden said: “Recent cyber-attacks show just how important it is we foster the development of the sector – delivering the double dividend of high paying jobs as well as strengthening the country’s cybersecurity.”

The UK’s Cyber Security and Resilience Bill is expected to be introduced to Parliament later this year. It includes proposals to protect supply chains, critical national services, and IT service providers and suppliers.