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Cyber sector growth forecast

by Simon Foulds

Improving cybersecurity will make the cyber sector a “prime target for economic growth,” producing homegrown jobs and protecting growth in other sectors.

This is according to MP and Chancellor of the Duchy of Lancaster, Pat McFadden, speaking at CyberUK 2025 in Manchester.

Adding the government will turbocharge this sector in the upcoming Industrial Strategy, which aims to be a blueprint for kick-starting economic growth in the UK.

“There is an enormous potential for cybersecurity to positively impact our economy: creating jobs, growth, and opportunities. This is why the cyber sector will be a prime target for economic growth in the upcoming Industrial Strategy, as the Government strives to secure Britain’s future, with the UK being a global player within cyber security.”

Laboratory for AI Security Research

Last November, the minister launched the Laboratory for AI Security Research (LASR) and funded 10 PhDs at the University of Oxford, 9 researchers at The Turing Institute, and pioneering research through 8 leading UK universities, including Queen’s University Belfast and Lancaster University.

An additional £7 million of government funding has now been allocated to LASR, and it has announced a partnership with technology company Cisco.

“Cisco will work with LASR, and in particular the National Cyber Security Centre (NCSC), to run challenges across the UK and build a demonstrator in the North West to showcase how our scientists and entrepreneurs can work together to manage the risks, build the skills, and grasp the opportunities of AI security. This is the first collaboration of its kind with LASR, and will be a trailblazer that others can follow to help LASR drive cutting-edge research into the impact of AI on national security.

 “We are ready to support businesses, and the National Cyber Security Centre will provide advice and guidance on how to raise the cybersecurity bar.

“We’re modernising how the state approaches cyber, through the Cyber Security and Resilience Bill, which will grant new powers for the Technology Secretary to direct regulated organisations to reinforce their cyber defences. It will also require over 1,000 private IT providers to improve their data and network security.

“And it will require companies to report a wider array of cyber incidents to the NCSC in the future – to help us build a clearer picture of who, and what, hostile actors are targeting.”

How do we bolster cyber protection?

The Department for Science, Innovation and Technology has also launched a suite of measures to bolster cyber protection for individuals and businesses across the UK.

Feryal Clark – Parliamentary Under-Secretary of State for AI and Digital Government, speaking at CyberUK said these measures include:

  • A new Software Security Code of Practice to communicate essential steps every organisation developing or selling software should take to secure their products.
  • This innovative guidance mirrors the AI Security Code of Practice, which will be adopted as a global standard by the European Telecommunications Standards Institute, that sets out baseline steps organisations in all countries should follow to secure AI models and systems.
  • To help inoculate businesses against cyberattacks, the government will also drive investment into CHERI, a ‘magic chip’ that builds advanced memory protections in microprocessors, blocking up to 70 per cent of common cyber attacks. £4.5 million will be spent helping firms bring these chips to market, find customers, and break down barriers to adoption.

In April the government launched a Cyber Governance Code of Practice. This package of measures shows boards and directors how to manage digital risks and protect their businesses and organisations from cyber attacks.

It covers a range of areas, including robust cyber strategies, promoting a culture in workplaces so all employees are aware of the potential cyber risks they could face in their daily work, and having incident response plans in place, which will mean organisations can respond quickly to cyber incidents as they occur.

Small businesses looking to strengthen their online defences are encouraged to engage with the NCSC’s Small Business Guide, which provides quick and easy actions to help bolster their defences and support through the Cyber Local scheme, which provides tailored funding to boost regional cyber skills. 


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