Cyber security has evolved from a technical concern to a significant business issue. With a substantial increase in cyber attacks and tightening regulations in the United Kingdom, businesses must proactively comply with national cyber security frameworks. This is essential for protecting themselves and their customers.

What Are The Risks of Non-Compliance?

The repercussions of failing to comply with cyber security regulations in the United Kingdom can lead to:

• Large Fines: The breach of the UK General Data Protection Regulation can potentially lead to fines of upwards of £20 million or 4% of the annual turnover of the company, whichever is higher.
• Legal Status: Incidents of non-compliance may expose businesses to lawsuits, particularly under stringent privacy laws that protect consumer data rights.
• Loss of Reputation: Data breaches can reduce customer’s trust in your business as customers take an unfavourable view of businesses failing to protect data, potentially reducing your business's revenue, and causing long-term reputational damage.

Important Cyber Security Regulations Affecting Businesses in the UK in 2025

UK General Data Protection Regulation (UK GDPR)

Following Brexit, the UK retained the GDPR framework, modified for UK conditions. The Information Commissioner's Office (ICO) administers UK GDPR and its principal focus is on data protection principles, the rights of individuals and obligations of organisations processing personal data.

Key UK Cyber Regulations in 2025

1. UK General Data Protection Regulation (UK GDPR)

After Brexit, the UK kept its unique version of GDPR. It is enforced by the Information Commissioner's Office (ICO) and sets out a framework of data protection principles and rights for individuals over their data. Businesses will need to ensure that they are processing information lawfully, fairly, and transparently.

2. Cyber Security and Resilience Bill (Anticipated in 2025)

In the King’s Speech back in July, the government announced this new bill that is set to make some substantial changes to the UK’s cyber-related legislation. The government aims to:

• Increase the sectoral scope of existing NIS Regulations.
• Enhance the enforcement powers of cyber regulators.
• Introduce new incident reporting obligations for critical services and digital providers.

In 2025, it is expected that the Bill will be introduced into Parliament.

3. Online Safety Act 2023

The Online Safety Act came into effect in October 2023 establishing a duty of care for online platforms to ensure, so far as reasonably practicable, that users get (appropriate) protection from harmful content - especially children. The act predominantly targets social media platforms and user generated content platforms but other business providing digital interactions similar to these platforms will be subject to this act too.

Critical elements:

• It applies to services which can be accessed by UK users, which allow for user interaction (e.g. social media) and posting of user content (e.g. user user-generated forums).
• Regulated by OFCOM.
• Companies will be required to complete risk assessments and put in place protective measures.
• Initial enforcement will start from March 2025, and there are maximum fines of £18 million or 10% of total worldwide turnover.

4. Network and Information Systems (NIS) Regulations 2018

The NIS Regulations are designed to enhance cyber resilience to the essential services operators (e.g. energy, health, transport) and digital service providers.

From the end of 2023 onwards, the Cyber Security and Resilience Bill will amend and broaden the scope of NIS to include:

• Wider scope in terms of application to sectors.
• Persistent cybersecurity risk management and reporting duties.
• Government incident response expectations will be strengthened.

Activities for UK Businesses to Help Maintain Compliance

Develop a Strong Cyber Security Framework

Consider using established frameworks, such as:

Cyber Essentials: Supported by the UK government, Cyber Essentials is a certification scheme designed to help organisations protect themselves against common cyber threats.\

ISO/IEC 27001: ISO/IEC 27001 refers to an international standard that helps organisations manage sensitive company information. ISO/IEC 27001 outlines a systematic approach to managing sensitive information so that it remains secure.

• Perform Regular Compliance Audits: Internal and external audits can help recognise vulnerabilities, ascertain compliance with regulatory requirements, and prepare for regulatory inspections.
• Improve Supply Chain Security: Ask your third-party vendors and partners about their cyber security procedures to better understand the risks originating in your supply chain.
• Develop a Holistic Incident Response Plan: Create a clear incident response plan for the detection, response to, and recovery from cyber incidents. Also include compliance to mandatory reporting obligations for cyber incidents such as those proposed in the Cybser Security and Resilience Bill.
• Make a Commitment to Employee Training and Awareness: Human error is still an important factor in cyber incidents. Ongoing training programs can train employees to be aware of the cyber threats around them and how to respond to those threats.

Conclusion

As cyber threats continue to evolve, businesses in the UK need to stay ahead of these threats and the evolving regulatory landscape, which creates obligations businesses have to comply with. Knowing the primary regulations, implementing strong cyber security practices, and promoting a culture of regulation and awareness will help drive out cyber risks while maintaining the trust of their customers and stakeholders.