TLDR
The Cyber Security and Resilience Bill raises the bar for cyber security across the UK. SMEs, especially those in supply chains or using managed IT services, will need stronger controls, better supplier oversight, and clear incident response plans. Getting ahead of these changes now will reduce risk and avoid compliance pressure later.
In November 2025, the UK Parliament introduced the Cyber Security and Resilience Bill. The goal is simple but important. Strengthen cyber protection across the UK’s most essential services, and close the gaps that attackers are increasingly exploiting.
While much of the focus has been on healthcare, utilities, transport, and energy, the reality is that small and medium sized businesses are very much part of the picture. Many SMEs sit directly in the supply chains of these critical sectors, or rely on the same IT providers and systems.
This legislation follows a year of high profile cyber incidents across the UK. Ransomware attacks, service outages, and data breaches have shown how quickly a single weak link can disrupt entire organisations and, in some cases, public services.
Government ministers have since urged business leaders to take cyber risk seriously. The message has been consistent. Organisations that plan, test, and rehearse for cyber incidents recover faster and suffer far less long term damage.
The National Cyber Security Centre has echoed this view, warning that leadership teams who fail to prepare are putting their businesses at real risk.
So what does this bill actually change, and why should SMEs care?
Regulation of IT and cyber service providers
For the first time, many IT support companies, managed service providers, and cyber security firms will fall under direct regulation. This includes providers supporting both private businesses and public sector organisations such as the NHS.
Regulated providers will be expected to meet defined security standards, monitor their environments properly, and report serious cyber incidents promptly to both customers and authorities. Smaller providers may be exempt, but many medium sized MSPs will not be.
For SMEs, this means your IT partner’s security posture matters more than ever. Weak processes or poor incident handling on their side could now have legal and operational consequences for you as well.
Stronger supply chain oversight
Regulators will gain new powers to label certain suppliers as critical to essential UK services. These suppliers will then be required to meet minimum cyber security standards.
This is designed to close supply chain gaps that attackers often target. A small supplier with poor security can be an easy way into a much larger organisation.
Businesses will need to review who they rely on, how data is shared, and whether suppliers are meeting reasonable security expectations.
Tougher enforcement and penalties
The bill introduces stronger enforcement measures, including penalties linked to company turnover for serious failures. The intention is to make proper cyber security a business necessity, not an optional extra.
Organisations delivering essential services will be expected to follow a defined set of cyber security controls and demonstrate that they are doing so consistently.
New powers during national security threats
The technology secretary will be given authority to step in during serious cyber threats to UK national security. This could include directing organisations to increase monitoring, isolate high risk systems, or take other protective actions quickly.
For businesses connected to critical services, this adds a new layer of accountability and urgency.
Healthcare
Healthcare providers, diagnostic services, and their suppliers will face tighter oversight. Supply chains will be examined more closely, including third party software, cloud platforms, and outsourced IT support.
Many healthcare organisations still rely on older systems and operate under tight budgets, which makes compliance challenging. This increases the importance of practical, realistic cyber security planning.
Energy and utilities
Energy providers, water companies, data centres, and smart infrastructure such as EV charging networks are all in scope.
Managed service providers and data centre operators are now clearly included, not just the operators of essential services themselves. Supply chain dependencies, from chemical suppliers to grid management software, will need careful review.
Transport
Rail, road, aviation, and ports are all classed as critical infrastructure. Operators will need to ensure their suppliers meet security standards, incidents are reported correctly, and business continuity plans are in place to deal with disruption.
Water and waste
Water companies and their suppliers must protect not only physical infrastructure but also digital systems such as monitoring platforms and control systems. Vendor governance, resilience planning, and contingency measures are key focus areas.
Managed IT and support services
One of the biggest shifts is the formal regulation of medium and large managed service providers and IT support firms.
This means MSPs are accountable not just to customers, but also to regulators. Security controls, incident response processes, reporting, and supplier management all need to be robust and well documented.
For SMEs, choosing the right IT partner is no longer just about price or responsiveness. It is about risk.
A challenge, but also an opportunity
Cyber risk is now one of the most serious threats facing UK organisations of all sizes. In the past year alone, hundreds of significant cyber incidents were recorded nationally, with a noticeable increase in severe cases. You can replace this section with your own figures or NCSC references if needed.
The Cyber Security and Resilience Bill raises the bar. That will create pressure, especially for organisations that have treated cyber security as a tick box exercise. But it also creates an opportunity to build stronger, more resilient systems that protect your business, your customers, and your reputation.
Boards and leadership teams should be asking clear questions:
Ignoring these questions will only make compliance harder later.
At Knowall IT, we work with UK businesses to make cyber security practical, proportionate, and aligned with real world operations. We are ISO 27001 certified, which means our own systems, processes, and controls are independently audited against recognised international security standards.
Whether you need help reviewing suppliers, improving incident response, or strengthening day to day security, we focus on solutions that actually work for SMEs, not theory or box ticking.
If you want to understand how this legislation affects your business, or where your biggest risks might be, speak to our team. We are always happy to have a straightforward conversation and point you in the right direction.
If you have any questions or would like to discuss your security in more detail, book a call with us.
