The UK’s cybersecurity sector is set to receive a multi-million pound boost under fresh plans from the UK Government to turn cutting-edge innovation into new businesses and cyber startups.

Laying out the Cyber Growth Action Plan, the Government hopes it can ‘turbo-charge’ growth in the UK’s cyber industry, which already generates £13.2 billion in annual revenue and supports over 67,000 jobs. 

The plan will chart a course for the technologies, processes, and services designed to protect digital systems, building on the Government’s expansion of cyber sector regulations recently proposed as part of the new Cyber Security and Resilience Bill.

Led by independent experts at the University of Bristol and Imperial College London’s Centre for Sectoral Economic Performance, the action plan will examine the strengths of the UK’s cyber industry and provide a roadmap for its future growth. 

This will result in a set of recommendations presented later this year that the Government said it will use to plot out the steps that can be taken to deliver maximum impact.

The Growth Action Plan will feed into the forthcoming National Cyber Strategy, with the review covering aspects such as the supply and demand of cyber goods and services, including protective monitoring and encryption, to understand where growth opportunities exist.

The research will aim to spot new trends and potential areas to capitalise on, as well as explore emerging technologies, including AI and quantum, to identify where the country might strengthen its competitive edge.

“The UK Cyber Sector is successful and growing, but so too are the challenges as demonstrated by recent events which have affected businesses and consumers,” said Simon Shiu, Professor of Cybersecurity at the University of Bristol and one of the project’s leaders.

“Based on input from all parts of the Cyber Sector, this project will make independent recommendations to accelerate growth in Cyber, but also to increase cyber-resilience in the other sectors critical to UK security, industry, and prosperity.”

At the same time as announcing the action plan, the Government also committed up to £16 million in new investment for two cyber sector programmes designed to kickstart growth. 

Up to £10 million in additional funding will be invested in the CyberASAP programme over the next four years, which will be focused on supporting the UK’s academic cyber sector with the aim of turning research into commercial companies. 

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The Government claims the programme has already supported the creation of thirty-four spin-out companies, which have raised over £43 million in investment, with the new funding aiming to see another twenty-five new spin-outs attract £30 million in investment by 2030.

A further £6 million will also be allocated to support cyber startups and SMEs, aiming to help firms scale and access new markets through trade missions, building on the Government’s current tech accelerator, Cyber Runway.

By backing researchers and entrepreneurs, the Government said these programmes will see the UK remain a global leader in cyber, unlocking more jobs and innovation, as well as bolstering national cybersecurity.

“Recent cyber attacks show just how important it is we foster the development of the sector, delivering the double dividend of high-paying jobs as well as strengthening the country’s cyber security,” said Chancellor of the Duchy of Lancaster, Pat McFadden.

“Today’s investment will help to turn innovative ideas into successful businesses up and down the country, and the new research will support our mission to grow the economy.”