Essential Cybersecurity and Data Privacy Takeaways from the King’s Speech

King Charles III’s speech at the opening of the UK Parliament last week outlined critical legislative measures the new government intends to pursue during their time in power, highlighting the government’s priorities for the years ahead. 

The ambitious legislative programme included around 40 Bills, with two specific pieces of legislation focussing on the technology sector: the Cyber Security and Resilience Bill and the Digital Information and Smart Data Bill.    

 So, what are the key information and cyber security takeaways from these Bills, and what can businesses do now to prepare for incoming legislation? 

The Cyber Security and Resilience Bill 

The Cyber Security and Resilience Bill aims to fortify the nation’s cyber defences and secure the critical infrastructure and digital services businesses heavily rely on. Recent cyber attacks on the NHS and the Ministry of Defence highlight the urgency of this move. The forthcoming bill promises to address these vulnerabilities swiftly, ensuring the protection of the digital economy and supporting growth. 

Central to the Bill’s strategy is an overhaul of existing regulations, which currently reflect outdated EU laws, namely NIS, which will shortly be replaced with the updated NIS 2. The new UK legislation will strengthen regulators and mandate increased reporting of cyber threats. This will give the government a clearer understanding of the cyber landscape and improve its response capabilities. 

The Bill also aims to extend the reach of current regulations to cover more digital services and supply chains, which have become increasingly attractive targets for cyber attackers. By doing so, it seeks to fill critical gaps in the nation’s defences and prevent the kind of disruptions recently experienced by public services in the UK, such as the ransomware attack that crippled several London hospitals. 

The legislation is expected to introduce higher fines and penalties for non-compliance with cybersecurity standards to reinforce any new statutory requirements. These penalties will complement the occasional but significant fines already imposed by the Information Commissioner’s Office (ICO) for data breaches. 

Recognising the interconnected nature of commerce, the proposed Bill will also look to require organisations to ensure their suppliers and partners meet robust cybersecurity standards. It may also impose obligations on senior management, holding directors or managers personally accountable for non-compliance. 

Regulators will be empowered to ensure the implementation of essential cyber safety measures, including potential cost recovery mechanisms and the authority to investigate vulnerabilities proactively. Furthermore, the Bill will mandate comprehensive incident reporting, giving the government better data on cyberattacks, including ransomware incidents, to improve its threat detection and response. 

With the impending introduction of the Cyber Security and Resilience Bill, businesses, especially those in technology and critical infrastructure sectors, will likely need to invest in stricter cybersecurity measures. This will enhance their resilience and ensure they comply with the new, more rigorous standards. 

However, the increased reporting obligations may raise administrative burdens and costs for businesses. Recognising these challenges, the government plans to provide resources, particularly for small businesses, through the National Cyber Security Centre (NCSC) to help them improve their cybersecurity practices. 

The Bill is also likely to include provisions related to artificial intelligence (AI) in addition to focusing on general cybersecurity. Although a dedicated AI Bill was not introduced, the Cyber Security and Resilience Bill notes acknowledge AI’s growing influence and suggest measures to address the cybersecurity implications associated with powerful AI models. A holistic approach in this manner would undoubtedly ensure that AI technologies were developed and deployed more securely and with greater consideration, thus mitigating potential risks. 

Top 5 Takeaways From The Proposed Cyber Security and Resilience Bill  

1. Stricter Compliance and Penalties: The new Cyber Security and Resilience Bill is expected to introduce higher fines and penalties for businesses that fail to comply with mandated cybersecurity standards, alongside existing ICO penalties for data breaches.
2. Expanded Scope and Reporting Requirements: Businesses must adhere to updated regulations that cover more digital services and supply chains. Organisations will also be required to report cybersecurity incidents more comprehensively to provide the government with better data on cyber threats.
3. Supply Chain Cybersecurity: The proposed Bill strongly emphasises the need to safeguard critical infrastructure from cyber-attacks better. Due to the interconnected nature of modern commerce and the recent severity of supply chain cyber incidents, businesses must be prepared to ensure their suppliers and partners also maintain high cybersecurity standards and can demonstrate that.
4. Senior Management Accountability: The Bill may impose obligations on senior management to implement cybersecurity measures, with potential personal fines or penalties for non-compliance.
5. Support for Small Businesses: The government plans to provide resources through the National Cyber Security Centre (NCSC) to help small businesses improve their cybersecurity practices and meet new regulatory requirements. 

The Digital Information and Smart Data Bill 

In a significant legislative shift, the newly unveiled Digital Information and Smart Data Bill aims to harness the power of data to fuel economic growth, support a modern digital government, and enhance citizens’ lives. This initiative follows the previous government’s unsuccessful attempt to pass the Data Protection and Digital Information (DPDI) Bill but promises a fresh approach tailored to the current digital landscape. 

At its core, the Bill seeks to create a comprehensive regulatory framework that encourages innovative data uses. Central to this is the promotion of Digital Verification Services, which aim to streamline everyday tasks such as moving house, pre-employment checks, and purchasing age-restricted goods by providing secure digital identities. This innovation is expected to save time and money while enhancing the security of online transactions. 

The Bill also emphasises Smart Data schemes, which will facilitate the secure sharing of customer data with authorised third-party providers upon request. Like the successful Open Banking framework, this initiative aims to foster innovative services that enhance decision-making and market engagement. The Bill seeks to empower consumers and drive economic growth across various sectors by establishing a legislative foundation for these schemes. 

Improving public services and supporting scientific research are also key goals of the Bill. By amending the Digital Economy Act, the government aims to improve data sharing about businesses that utilise public services, transition to electronic registration of births and deaths, and standardise IT systems in the health and social care sectors. Additionally, the Bill will update data laws to reflect modern interdisciplinary research needs better, allowing scientists to obtain broad consent for their work and enabling commercial researchers to use data effectively. 

The Bill introduces targeted reforms to data laws to balance protection with innovation to further these goals. These reforms aim to clarify existing regulations, remove barriers to developing new technologies, and ensure high data protection standards are maintained. 

A significant component of the Bill is the modernisation and strengthening of the Information Commissioner’s Office (ICO). The ICO will be restructured with a new CEO, board, and chair, and new powers will be granted to enforce data protection laws. This transformation aims to ensure the ICO can effectively oversee the enhanced data protection measures proposed by the Bill. 

The Digital Information and Smart Data Bill represents a proactive approach to leveraging data to benefit the economy and society. By modernising regulatory structures, enhancing public services, and supporting scientific research, the government aims to position the UK at the forefront of the digital economy while maintaining high data protection and security standards.  

Top Takeaways From The Digital Information and Smart Data Bill  

1. Structural and Governance Changes to the ICO: The Bill restructures the ICO to provide it with a new governance framework and increased powers. These changes aim to enhance the ICO’s ability to enforce data protection regulations and oversee digital verification services.
2. Development of Secure Digital Identity Products: The Bill supports creating and adopting secure digital identity products and services. These products will facilitate secure transactions in various contexts, such as moving house, pre-employment checks, and purchasing age-restricted goods and services.
3. Support for Smart Data Schemes: The legislation promotes the development of smart data schemes, allowing customer information to be shared with authorised providers. This initiative aims to foster innovation and improve service delivery across the financial, energy, and telecommunications sectors.
4. Reforms to Data Laws: The Bill introduces targeted reforms to data laws to balance protection with innovation. These reforms aim to clarify existing regulations, remove barriers to developing new technologies, and maintain high data protection standards. 

What About AI Regulation In The UK? 

Despite expectations, the UK government did not introduce a dedicated AI bill in the King’s Speech. However, AI considerations are embedded within the Cyber Security and Resilience Bill and product safety measures, indicating the government’s recognition of AI technologies’ growing importance and potential risks. 

Despite the absence of a standalone AI Bill, the government did express a commitment to “seek to establish the appropriate legislation to place requirements on those working to develop the most powerful artificial intelligence models”.

This commitment highlights an ongoing effort to ensure that AI development and deployment are conducted within a framework that prioritises safety, security, and ethical standards. 

And whilst no immediate UK AI regulation looks likely, the EU’s AI Act has now become law. It applies to any business that trades or operates in or with EU businesses and consumers, so companies should prepare for this now and the likelihood of future UK AI-specific regulations.  

Getting Prepared – How Your Business Can Get Ahead of Incoming Regulation 

With impending cybersecurity legislation, ISO 27001 is a crucial asset for organisations looking to strengthen their digital defences. This internationally recognised standard aligns closely with many proposed Cyber Security and Resilience Bill and the Digital Information and Smart Data Bill requirements. ISO 27001’s risk-based approach to information security management mirrors the legislative focus on comprehensive risk assessment and mitigation strategies. 

Benefits of ISO 27001 for Compliance 

• Systematic Risk Management: ISO 27001 requires businesses to systematically identify, assess, and treat information security risks, aligning with the new regulatory focus on risk management and proactive vulnerability assessments.
• Structured Incident Reporting: The standard mandates procedures for detecting, reporting, and responding to security incidents, supporting the increased incident reporting requirements of the new legislation.
• Comprehensive Security Controls: ISO 27001 mandates a wide range of security controls, helping businesses meet the enhanced security measures required by the new regulations.
• Continuous Improvement: ISO 27001 promotes a culture of continuous improvement in information security, ensuring businesses adapt to new threats and regulatory changes. 

For businesses with a strong ISO 27001 foundation, compliance with upcoming cybersecurity regulations will be smoother, less time-consuming, and more cost-effective. Leveraging existing frameworks can reduce the workload and resources required to meet new legislative demands by as much as 50-70%.

This head start translates to substantial cost savings and allows businesses to allocate resources more strategically, focusing on fine-tuning security rather than building compliance frameworks from scratch.  

What Can Businesses Do To Prepare for AI Regulation 

As we approach more stringent AI regulations, ISO 42001 offers a proactive approach to compliance. Organisations that adopt this standard now are not just preparing for future regulations; they’re positioning themselves as leaders in responsible AI use. The potential benefits are substantial: enhanced security posture, improved stakeholder trust, and a competitive edge in an increasingly AI-driven market. 

The beauty of ISO 42001 lies in its adaptability and synergy with existing cybersecurity frameworks. Organisations already familiar with standards like ISO 27001 for information security will find ISO 42001 a natural extension of their security posture. The best practices for integrating AI frameworks with existing security measures begin with a holistic approach. This involves mapping AI systems to current security controls, identifying gaps, and implementing AI-specific safeguards where necessary. 

Looking To The Future 

By integrating robust information security and AI security processes, as outlined in ISO 27001 and ISO 42001, businesses can efficiently manage regulatory changes, enhance resilience, and maintain a competitive edge. This holistic approach ensures your organisation is compliant and well-prepared to face future cybersecurity challenges.