The Cyber Security & Resilience Bill: What SMEs need to know

Yesterday, the Cyber Security and Resilience (NIS) Bill was introduced in Parliament, marking a major step in strengthening the UK’s digital defences.

At first glance, it might seem like legislation for government bodies and large infrastructure firms. But SMEs, especially those in supply chains or servicing bigger organisations, should pay close attention.

As Lee Johnson, our CTO & CISO puts it:

What the Cyber Security & Resilience Bill does

The Bill updates the UK’s main cross-sector cyber security law, the Network and Information Systems Regulations 2018 (NIS Regulations). Previously, these rules applied to ‘operators of essential services’. Now, the government recognises that cyber risk is interconnected and layered across all sectors.

Why this matters for SMEs

You might think, “this is just for hospitals, energy, or water companies – not us.” But that’s a misconception. The ripple effects of the new Bill reach deep into the private sector, and SMEs need to take notice. Here’s why:

• Supply chain scrutiny: Even if you’re not directly regulated, you may supply goods or services to organisations that are. The Bill’s focus on “critical suppliers” means your customers could soon require you to meet stricter cyber standards.
• Shifting criminal focus: As large organisations and public infrastructure strengthen their defences, cyber criminals are likely to target smaller, less-protected firms. As our CTO, Lee Johnson, points out, this raises the risk profile for SMEs.
• Reputation and continuity at stake: A cyber breach, even if you’re not formally covered by the Bill, can disrupt your business, damage your reputation, and cause knock-on effects for regulated clients, potentially leading to lost business or liability.
• Competitive edge: SMEs that can demonstrate strong cyber security will stand out as trusted partners, while those with weak defences may find themselves losing out on contracts.
• Future-proofing: Even if you’re not yet in scope, now is the time to raise your cyber maturity. Getting ahead of regulation means you won’t be caught off guard, and you’ll be less likely to become a “soft target”.

So, what should SMEs actually do?

1. Assess your risk & exposure

• Map out the services you provide, who your clients are, and whether any are covered by the new Bill or connected to regulated organisations.
• Identify your “attack surface”: Do you manage or host services for regulated entities (e.g. data centres, digital service providers)?
• Review your supply chain: Who do you rely on, and who relies on you? Are any dependencies increasing your risk?

2. Raise your baseline cyber-hygiene

• Use frameworks like Cyber Essentials or similar to ensure basic controls (patching, access control, backups etc) are in place.
• Consider the higher bar expected under the Bill: rapid incident notification, robust supplier/third-party controls, formalised incident plans. 
• Internal policies: ensure you have an incident response plan, business continuity plan, and that staff know what to do if a breach occurs.

3. Prepare for increased expectations

• If you supply larger organisations, expect them to ask for evidence of cyber-maturity, audit rights, higher contract terms around cyber risk.
• Engage with your customers: ask them what they expect from you in terms of cyber controls. Don’t wait until you’re asked.
• Consider adding cyber clauses in your contracts: risk allocation, responsibilities, notification times.

4. Monitor evolving regulation & stay informed

• The Bill is introduced but not yet law, it still must pass through the parliamentary process. That means there may be amendments.
• Keep an eye on guidance issued by the NCSC and the regulators relevant to your sector.
• You may want to consider engaging external cyber security consultants or legal advisors to prepare for compliance.

5. Treat cyber as business risk, not just IT

• This Bill elevates cyber to the board-level: bigger fines, stronger regulation, closer government oversight. Cyber security is business risk.
• Make sure your leadership team are aware of this change, understand that being “outside scope” today doesn’t guarantee being “safe” tomorrow.
• Consider budgeting for cyber improvements, training, insurance, and appropriate resources.

Summary

The UK’s new Cyber Security and Resilience Bill is a significant step in strengthening national cyber-defences. But its real significance lies in the ripple effect it creates across the economy, including in the SME sector. As our CTO pointed out, hardening the “big targets” doesn’t eliminate risk – it simply changes the flow of it. SMEs must recognise they could become the “softer target” in a hardened ecosystem.

The good news is that this isn’t just a threat, it’s an opportunity. By proactively improving your cyber resilience, you not only reduce your vulnerability, but you can also win business, build trust with clients, improve continuity, and reduce the risk of disruption.

If you’re looking for an IT partner that can help your business stay secure and grow, book your free consultation today.