Firms Face Increasing Cyber Security Risk

5th February 2025

The British Chambers of Commerce (BCC) is warning that businesses face increased cyber security risks without stronger engagement with government.

Among the recommendations in a new report published today, the BCC is calling for ministers to:

• Carry out a cyber security awareness programme for businesses, particularly smaller firms
• Update the National Cyber Strategy
• Reform cyber security insurance to provide firms with better protection
• Address the shortage of UK cyber security professionals and support more training in all workplaces
• Engage directly with businesses to strengthen confidence in the UK’s digital infrastructure

The report has been produced by the BCC’s Digital Revolution Challenge Group, drawing on expertise from businesses of all sizes and sectors, academia and think-tanks.

It advises that the Cyber Security and Resilience Bill, due to be published this year, must be developed in full consultation with businesses. This is to avoid creating ‘an unnecessary burden for businesses’ and to ensure that firms are ‘actively incentivised to report cyber breaches or attacks’. This will then support the Government’s growth agenda by strengthening cyber resilience.

Changes to working environments have created more IT challenges for businesses. BCC research has revealed more than half of firms believed working from home left their computer systems more exposed.

The report highlights an urgent need to tackle the current shortage of cyber security professionals, and the digital safety skills gap facing over half a million businesses.

Alex Veitch, Director of Policy at the British Chambers of Commerce said:

“Cyber threats against businesses are growing, and without coordinated action many SMEs will remain at risk. Our report outlines some immediate actions for ministers to engage directly with firms.

“There’s a lack of specialist digital security knowledge in many smaller companies. Government needs to take the lead and proactively engage with business to raise awareness.

“Businesses are keen to see the detail of the Cyber Security and Resilience Bill in the coming months. The legislation must send a signal of confidence to the UK’s SMEs and not create unnecessary costs and reporting burdens.

“Cyber resilience isn’t just about protection; it’s about trust, innovation, and supporting the long-term growth of businesses.”