What the UK Cyber Security and Resilience Bill means for MSPs

James Griffin, CEO of CyberSentriq explains how the new Cyber Security and Resilience Bill will tighten MSP obligations and elevate supply-chain security.

Practical steps to manage your cybersecurity requirements

The UK’s forthcoming Cyber Security and Resilience Bill is expected to receive Royal Assent in early 2026.

The Bill, I believe, will play a significant role in reshaping cybersecurity obligations across the UK.

For managed service providers (MSPs), the legislation is particularly poignant because it extends regulatory duties directly to them.

It provides a velvet glove or an iron fist by tightening oversight of supply chain risks.

This makes the reality of resilience planning a must-have and a business-critical priority.

Why MSPs are in the spotlight

The Bill builds on the UK’s 2018 NIS Regulations and mirrors aspects of the EU’s NIS2 directive.

However, it explicitly brings MSPs into scope as ‘essential’ digital service providers.

That means stricter obligations around: 24-hour incident reporting to regulators and the NCSC, with a detailed follow-up required within 72 hours.

Baseline security controls across access, monitoring, and recovery for all services deemed essential.

Greater accountability for managing third-party and vendor risk.

This means regulators are able to designate ‘critical suppliers’ who will face an enhanced level of scrutiny.

The implications for MSPs are that they must not only secure their own operations but also and this is the crux, demonstrate that they can safeguard client supply chains.

With regulators gaining stronger enforcement powers, including audits and fines, compliance cannot be left to chance.

Why supply chain risk is urgent

Supply chain attacks are one of the fastest-growing threats.

If we look globally, we see that such incidents have surged by more than 400% between 2021 and 2023 and this isn’t something that’s just happening on far-flung shores.

If we focus on the situation in the UK, we see that the effects of these breaches have been felt across critical services and household brands.

Take, for example, the 2023 MOVEit breach where criminals exploited a vulnerability in file-transfer software, which in turn led to the exposure of staff data at prestigious organisations and companies such as the BBC, British Airways and Boots.

Or we can look at the 2024 Ministry of Defence payroll attack, where state-linked hackers compromised a third-party provider, which led to the details of 270,000 service personnel being leaked.

I look at these examples, and they show me that a single weak link can disrupt entire ecosystems.

And in that ecosystem, MSPs play a critical role and as such are often the connective tissue that attackers target.

Yet today, fewer than 25% of large UK businesses actively review the cyber risks in their supply chains.

The Bill is designed to change that. The upshot? MSPs must act now to be ahead of the curve.

The top 5 supply chain cyber risks

For MSPs and their clients, five risks stand out as key to watch:

1. Third-party software flaws: Vulnerabilities in common tools exploited at scale
2. Small vendor weaknesses: Less mature security at subcontractors can create “easier” entry points for attackers
3. Attacks on MSPs themselves: As the critical pin in ecosystems, the compromise of an MSP’s own tools or access can cascade to all clients
4. Lack of visibility: Many firms actually don’t know their own suppliers’ cyber position, which in turn can create blind spots
5. Single points of failure: This can occur with an over-reliance on a single vendor

Each of these risks highlights why it’s critical for MSPs to implement strong internal controls.

Practical steps for MSPs

So, let’s be honest, what should MSPs be doing right now to align with the Bill and strengthen resilience via internal controls?

1. Strengthen vendor assessment: Inventory critical suppliers and perform security due diligence, from questionnaires and certifications (ISO 27001, Cyber Essentials) to contract clauses requiring incident notification and patch management

2. Move to continuous monitoring: Adopt monitoring and threat intelligence tools to spot anomalies in vendor access or behaviour. Share intelligence with industry peers and the NCSC to stay ahead of emerging threats

3. Build stronger baseline security: Implement layered defences from multi-factor authentication and zero-trust access to regular patching and endpoint detection. Ensure your own security is demonstrably robust; your credibility with clients depends on it

4. Elevate backup and recovery: Backups are no longer a ‘nice to have.’ They are the backbone of compliance and a competitive advantage. MSPs must test disaster recovery processes at regular intervals and prove to clients that downtime, even in the face of ransomware, will be minimal

5. Prepare incident response playbooks – Define who does what if a breach actually occurs, including reporting within the new 24-hour window. I’d recommend MSPs run tabletop exercises so staff and clients know their roles and any chains of command under pressure

Compliance as competitive advantage

The Cyber Security and Resilience Bill isn’t just about avoiding fines, it’s about raising the bar across the digital economy.

For MSPs, early adoption of these practices can actually strengthen client trust, while also differentiating services.

This can turn compliance into a market advantage.

Those who lag risk both regulatory penalties and reputational damage.

Change is coming, and those MSP that signal they are ready will succeed.

Those leaders will be seen as trusted partners, capable of not only meeting and managing legal requirements but also delivering business continuity when it matters most.

Resilience is no longer optional, I believe, it is the foundation of success in a regulated, high-threat environment.

MSPs should embrace the Bill’s intent now and build stronger services, protect clients and thrive in the UK’s new era of cyber accountability.