The UK’s Modern Industrial Strategy places significant emphasis on cyber security.
The 10-year plan – published this week – features opportunities around cyber security as a critical component of the nation’s economic security, digital transformation, and technological sovereignty.
Published soon after Chancellor Rachel Reeves used the 2025 Spending Review to outline the importance of AI capability and cyber resilience, the Industrial Strategy recognises cyber security as both a foundational requirement for business operations and a high-growth sector with substantial export potential.
The accompanying Digital and Technologies Sector Plan identifies cyber security as an area for investment, addressing challenges that prevent widespread technology adoption and establishing supply routes into intelligence and defence. Cyber security is one of six “frontier technologies” listed as having the highest potential for growth.
Cyber security as an economic priority
The Industrial Strategy considers cyber security within the broader context of economic and national security, reflecting on security and economic ties that are “shifting in the face of rising geopolitical instability”.
Government recognises that strengthening economic security requires strategic investments in critical supply chains, technologies, and energy security – as well as support for businesses in understanding and mitigating cyber risks.
Cyber security capabilities are also closely integrated with the UK’s defence industrial strategy. The Government’s commitment to increase defence spending to 2.6% of GDP, with ambitions to reach 3% in the next Parliament, will simultaneously support cyber security development.
It identifies £1.2bn further investment into skills per year, including support for adult learners through Local Skills Improvement Plans (LSIPs), and courses to support 16–19-year-olds.
Also referenced is the expansion of Cyber Essentials accreditation and bringing digital skills into classrooms and communities to address the needs of future careers. It includes plans to support more than 4,000 graduates, researchers and innovators aiming to work in AI, computer science and cyber security. The need is identified for specialist skills in cyber security.
The Strategy references cyber security clusters across the UK linking with lynchpin organisations such as the National Cyber Security Cluster to form a thriving ecosystem. Belfast is cited as one example of strength in cyber security, with Northern Ireland home to more than 100 cybersecurity businesses, supporting 2,750 jobs, and paying an average salary of £53,300.
Strategic digital integration
Cyber security itself sits within the Digital and Technologies sector, one of the eight high growth sectors identified in the Industrial Strategy.
It places cyber security alongside core growth industries including AI, advanced connectivity, quantum, and semiconductors. However, digital technology runs throughout the document, with the Industrial Strategy noting that the UK’s Digital and Technologies economy is responsible for “building our sovereign capability in the most strategically important areas”.
The Digital and Technologies Sector Plan sets out cyber security as being crucial for economic stability in a time in which the impact of cyber attacks has become more prominent.
The UK’s cyber security industry generates £13.2 billion in revenue across more than 2,000 firms, and the UK is recognised as one of the most committed countries to cyber security globally. The Plan picks out regional hubs in the South West, Greater Manchester and Lancashire, and Belfast as emerging centres of innovation.
Meanwhile, cyber security exports continue to boost the UK economy, growing from £4.1 billion in 2020 to £7.2 billion in 2023. AI presents an opportunity to accelerate this.
Regional cyber security growth
Ben Shorrock, UKC3 Director and CEO of TechSpark, welcomed the Industrial Strategy’s recognition of cyber security as fundamental to strategic regional and UK economic growth.
“The Industrial Strategy supports what we’ve been building through UKC3 – a thriving cyber ecosystem, operating regionally and meeting distinct local needs, but with a central national point of access for partnerships and collaboration.
“The plan for investment in cyber skills, Cyber Essentials, and other digital technologies shows that the Government understands that cyber security is both a fundamental business requirement as well as an area of economic growth.
“With our established network of regional cyber security clusters, UKC3 is ready to work with the Government to bridge national policy with local implementation – ensuring that investment benefits businesses and emerging cyber professionals throughout the UK.”
