Clause 15 - Reporting of incidents by regulated persons

Cyber Security and Resilience (Network and Information Systems) Bill – in a Public Bill Committee at 9:25 am on 10 February 2026.

Alert me about debates like this

Question proposed, That the clause stand part of the Bill.

Photo of Andrew Murrison Andrew Murrison Conservative, South West Wiltshire

With this it will be convenient to discuss:

Clause 16 stand part.

New clause 6—Inclusion of ransomware attacks in the NIS Regulations—

“In regulation 1(2) (interpretation) of the NIS Regulations—

(a) in the definition of ‘incident’, after ‘systems’ insert ‘or a ransomware attack which is targeted at the security of network and information systems’;

(b) after the definition of ‘online search engine’ insert—

‘ransomware attack’ means a cyber-attack involving a type of malicious software that infects a victim's computer systems, can prevent the victim from accessing systems or data, impairs the use of systems or data or facilitate theft of data, and in relation to which a ransom is demanded for access to be restored or for data not to be published.”

This new clause would include ransomware attacks in the definition of “incident” in the NIS Regulations.

New clause 7—Impact of reporting requirements on relevant bodies—

“(1) The Secretary of State must, within 12 months of the passing of this Act, publish and lay before Parliament—

(a) a review of the impact, on relevant bodies, of—

(i) the requirements relating to the notification of incidents in Parts 3 and 4 of the NIS Regulations (as amended by this Act); and

(ii) any additional incident notification requirements made by regulations under this Act; and

(b) proposals for the creation of a single cyber incident reporting channel for relevant bodies.

(2) A review under this section must consider –

(a) the costs of requirements on relevant bodies; and

(b) interactions with other incident reporting regimes.

(3) In this section, ‘relevant bodies’ means operators of essential services, critical suppliers or digital service providers, as defined by the NIS Regulations.”

This new clause would require the Secretary of State to review the impact of incident reporting requirements on relevant bodies, and to set out proposals for a single incident reporting channel.

Photo of Kanishka Narayan Kanishka Narayan Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)

I will begin by discussing clauses 15 and 16. Clause 15 updates the incident reporting provisions in the Network and Information Systems Regulations 2018. Under the current regulations, organisations are required to report incidents only once they have had a significant impact on service continuity. It is widely recognised that this is too narrow, and results in a range of concerning incidents going unreported and a distorted picture of how secure and resilient the UK’s essential services actually are.

To take two examples: a ransomware attack where confidential data has been exfiltrated from an organisation without an immediate impact on service would not be reportable; nor would a pre-positioning attack, where a hostile actor has hacked into a network and is in a position to cause significant disruption down the line, such as to the provision of drinking water. That cannot be right, and does not reflect the cyber-threats that critical services face.

To ensure such incidents are caught, the clause sets a new, wider definition of incidents that must be reported. The focus is now on incidents that have successfully affected the security or operation of an organisation’s network and are likely to have a significant UK impact, which will ensure that regulators and the National Cyber Security Centre are fully aware of the range of cyber-threats affecting the UK’s essential services.

The Bill sets out the factors that should be considered when assessing whether an incident has had, or is likely to have, a significant impact in the UK—including, crucially, whether the confidentiality, authenticity, integrity and availability of data has been compromised. The Government will provide further clarity in secondary legislation, setting out thresholds for each sector for when an incident is considered to have had, or be likely to have, a significant impact. That will be consulted on before it is introduced. Taken together, it means that only meaningful incidents are reported. Over-reporting has been a concern raised by hon. Members throughout the Bill’s progress, so I stress this point: things such as unsuccessful phishing emails will clearly not be reportable, as they would not be likely to have a significant impact.

Given our economy’s systemic dependence on data centre facilities, for that sector alone we will also ensure that ofcom and the NCSC receive reports on a wider range of potential incidents and near misses. That ensures that not only immediate disruptions but incidents posing future risks are reported.

Clause 15 also streamlines the reporting process for all NIS sectors. It ensures that incident notifications and reports go to the NCSC at the same time as the regulator. It also sets out what those organisations can do with the information they receive, including how the information can be shared to manage the wider impacts of an incident or prevent future incidents. Finally, the clause introduces faster reporting, so that the NCSC and regulators are informed within 24 hours of entities becoming aware that a reportable incident is taking place.

The 24-hour notification will be light touch, but will enable the NCSC and regulators to offer faster support to minimise the negative impacts of the incident. Fuller details will need to be reported within 72 hours of the entity becoming aware that a reportable incident is happening. The changes will protect the UK’s essential services, ensuring that the NCSC and regulators are able to provide the best support that they can.

Clause 16 sets out requirements for managed service providers, relevant digital service providers, and operators of data centres to inform customers who are likely to have been adversely affected by a reportable incident. Under the current regulations, there is no requirement for any regulated entity to inform its customers if it has been impacted by a reportable incident. That may have made sense when the NIS regulations were more heavily focused on operators of essential services and the primary concern was service disruption, but it would be an inexcusable omission now that the Bill is expanding to include managed service providers and operators of data centres, in addition to the digital service providers already in scope.

These are organisations that, if compromised, could leave their customers’ systems, data or services exposed or inaccessible. In such circumstances, it is vital that their customers are notified, so that they can take whatever steps they need to in order to mitigate those risks.

Photo of Bradley Thomas Bradley Thomas Conservative, Bromsgrove

I have two points for the Minister to address. First, could he clarify whether an organisation would face repercussions if a regulator believed in retrospect that notification should have been provided sooner? Secondly, on customer notification, can the Minister address the concern around striking the right balance between informing the customer and ensuring that the update that they receive is meaningful and not so vague that it causes further distress or worry?

Photo of Kanishka Narayan Kanishka Narayan Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)

I thank the hon. Member for those two thoughtful points. On the first, in terms of retrospective regulatory action on the adequacy of notification, I expect that the regulators will set out—in their guidance and by working closely with the entities in scope—their expectations about the nature and timeliness of the notification. That will be one input into a regulator’s broader assessment of entities’ compliance with the regime. I expect that timely notification will be assessed on an ongoing basis by the regulator, but I would not expect it to be an exclusive or primary aspect.

On the question of customer notifications being proportionate, I share the hon. Member’s concern about ensuring that it is timely and efficient and at the same time meaningful for the relevant customers. I hope that exactly those principles are embodied in the guidance that regulators share about notification requirements.

Customers being notified is all the more important given that in many cases, those customers will themselves be operators of essential services and other critical national infrastructure. The Bill therefore places new transparency requirements on managed service providers, relevant digital service providers and operators of data centres. Similar requirements were introduced under the NIS2 regulations in the European Union.

Clause 16 requires those regulated entities to take steps to establish which of their customers, if any, are likely to be adversely affected by a reported incident. It then sets out the information that the entity must share with those identified customers. These new requirements will support the overall resilience of the UK’s essential services and economy, which depend so heavily on these services, and reduce the overall impact of disruptive cyber-attacks.

Photo of Alison Griffiths Alison Griffiths Conservative, Bognor Regis and Littlehampton

New clauses 6 and 7 sit together and are linked by the same practical concern regarding clarity and workability when an incident is unfolding.

I will start with new Clause 6. Ransomware is no longer an occasional or unusual cyber-event; it is now one of the most common and disruptive threats facing essential services, digital providers and their supply chains. Written evidence to this Committee was clear that ransomware incidents are now routine, high-impact events, and that uncertainty at the outset of an attack often makes the consequences worse. The Bill rightly broadens the definition of an incident to capture events that are capable of causing harm, not just those that already have. That is the right direction of travel, but when organisations are under pressure, particularly in the first 24 hours of an incident, uncertainty slows action. Time is lost debating definitions rather than focusing on containment, escalation and reporting.

New clause 6 addresses that problem directly. It makes it explicit that a ransomware attack is an incident for the purposes of the NIS regulations, and sets out clearly what is meant by ransomware attack. It would not create a new duty; it would remove doubt from an existing one. Clear definitions support better behaviour when organisations are operating under real pressure.

New clause 7 follows naturally from that point. If we want faster and clearer reporting, the system into which organisations are reporting has to work in practice, not just on paper. The Bill expands reporting requirements and introduces new notification duties. That is understandable, but UK Finance told the Committee that many firms already support cyber-incidents under multiple regulatory regimes and that additional reporting layers risk duplication rather than resilience. When an incident is live, that duplication causes friction, slows the response and increases costs. It can reduce the quality of information being shared because teams are stretched across parallel processes rather than focused on managing the incident itself.

We do not seek in new clause 7 to reopen the policy intent of the Bill; the new clause would require a review, once these changes are in force, of how the reporting requirements are working in practice. That review would consider costs and interactions with other reporting frameworks. The new clause would also require that proposals for a single cyber-incident reporting channel be published. That is not a bureaucratic exercise; it reflects concerns raised in evidence that resilience is undermined, not strengthened, when reporting becomes fragmented at moments of stress.

Taken together, new clauses 6 and 7 are about making the system clearer at the front end and more usable overall. Clear definitions encourage timely reporting and coherent reporting channels make that reporting effective. I hope that the Committee will give serious consideration to both new clauses.

Photo of Ben Spencer Ben Spencer Shadow Minister (Science, Innovation and Technology)

It is a pleasure to serve under your chairmanship, Dr Murrison, and it is always a pleasure to follow my hon. Friend the Member for Bognor Regis and Littlehampton. I will speak to clauses 15 and 16 and to new clauses 6 and 7, tabled in my name on behalf of His Majesty’s loyal Opposition.

The previous Government stated in their consultation covering the subject of cyber-incident reporting that security breaches that did not result in a successful attack could still leave organisations open to follow-up attacks. It was identified that reporting how the breach took place would also allow regulators and other organisations to prepare for similar attacks in the future. It is therefore a welcome development that Clause 15 significantly increases the scope and speed of cyber-incident reporting by regulated entities to competent authorities and the NCSC.

That increase in scope is achieved by broadening the definition of reportable incidents from the current position, where only cyber-attacks having an actual adverse effect are reportable, to a position to where cyber-incidents that are capable of having an adverse effect on the operation or security of network and information systems must also be reported. The Government’s explanatory notes for the Bill state that this change in definition

“is designed to include incidents that have compromised the integrity or security of a system without causing significant disruption yet, but that could have potential significant impacts in the future.”

This has been broadly welcomed by industry stakeholders as a measure that should provide regulators with greater intelligence about emerging threats, leading to improved risk management and hardened resilience in their sectors.

On the importance of intelligence gathering, we heard evidence from David Cook of DLA Piper and Chung Ching Kwong of the Inter-Parliamentary Alliance on China, among others, about the increasing use of prepositioning and “live off the land” technologies deployed by malicious actors. Once systems are infiltrated, attackers remain in systems, sometimes harvesting data, waiting for the moment when they can cause maximum harm and disruption. Those serious risks should be flagged to regulators wherever they are identified.

Dr Sanjana Mehta of ISC2 described problems of underreporting in relation to the existing NIS regulations regime, and welcomed the principle of expanding reporting, as did Jill Broom of techUK. However, both cautioned that while some high-level factors have been provided as to the criteria indicating whether an attack should be reported, such as the number of users, impact, duration of interruption and geographical reach, what is not clear at present are the thresholds that are linked to those criteria. Those details are vital if reporting is to be successful in ensuring that regulators are kept appraised of the most serious threats.

Dr Mehta summarised that concern succinctly in her comment:

“In the absence of those thresholds, our concern is that regulated entities may be tempted to over-report rather than under-report, thereby creating more demand on the efforts of the regulators”. ––[Official Report, Cyber Security and Resilience (Network and Information Systems) Public Bill Committee, 3 February 2026; c. 16, Q14.]

Likewise, techUK has stated in its written briefings on the Bill that

“technically any phishing email is ‘capable of’ having a significant impact if the organisation lacks adequate detection or response capabilities. This will lead to over-reporting of low-level incidents and potentially overwhelm regulators, thereby distracting attention from genuinely significant threats.”

As in many aspects of the Bill, the problem is not on the principle but in the detail. We heard in oral evidence about the concerns of industry and regulators regarding the availability of suitably qualified personnel to build capacity for effective regulatory oversight. We must be alive to that important consideration in ensuring that thresholds are proportionate and risk-based.

The Government have stated in their factsheets on the Bill that they intend

“to introduce thresholds through secondary legislation before this measure is brought into in force” and after a period of consultation. They have also said that those thresholds will

“clarify the points at which we would consider the impact of an incident to be ‘significant’, and therefore reportable to regulators”.

What discussions has the Minister had to date with regulated entities and regulators about the approach to consultation on these thresholds? What is the feedback on what those organisations consider to be reporting priorities?

Clause 15 also introduces comprehensive, updated procedures for reporting cyber-security incidents. The timetables for reporting are shorter than existing ones, requiring regulated entities to make an initial report within 24 hours of discovering an incident, and a more comprehensive report within 72 hours. In each case, both the relevant competent authority and the NCSC must receive those notifications. The initial report must include the entity’s name, the essential service affected and brief details of the incident. Full notifications must set out more in-depth information, including timing, duration, whether the incident is ongoing, information on the impact of the incident or the impact that is likely to occur, and whether the incident was caused by a separate incident affecting another regulated entity.

The clause gives the NCSC enhanced information-sharing powers in relation to operators of essential services and data centres, which enable it to inform authorities and other jurisdictions when incidents could have a significant impact on the security of network and information systems in those countries. Given the intensifying nature of cross-border enterprise in supply chains—including in the provision of digital services such as cloud services and data centre capacity—such information sharing is a desirable and increasingly necessary measure.

In the traditional national security domain, cross-border intelligence sharing, subject to appropriate safeguards, is already vital to protecting our daily freedoms and the functioning of society. It is only right that co-operation should be extended—again, subject to appropriate safeguards—to the cyber-security domain, given the broad acknowledgment that cyber-security is vital and a growing element of our national security.

The NCSC has also been granted powers—subject to consultation with the regulators and the reporting entity—to share information about cyber-incidents to manage or prevent further risks, or where the NCSC believes that disclosure of information would be in the public interest. Given the widespread, knock-on effects of attacks such as data breaches on individuals, those powers are clearly necessary and useful. That consideration is reflected in clause 16, which obliges regulated entities to make their customers aware of incidents where their data has been compromised.

Notwithstanding the necessity of the clauses, some industry stakeholders have expressed concerns about the extent of regulator information-sharing powers under the Bill more generally. Can the Minister provide reassurance, beyond the thin information on the face of the Bill, regarding the safeguards that will be in place to prevent the sharing of sensitive information that could impact the businesses of regulated entities?

I move on to new clause 6. The Government have acknowledged through their recent consultations the particular risk presented by ransomware attacks to the UK economy. However, they have not yet brought forward formal legislative proposals for a broader reporting scheme. In the last year, ransomware was deployed in some of the cyber-security attacks that have raised public awareness of cyber-security and caused the greatest disruption to jobs, supply chains and the economy.

We heard in oral evidence from Detective Chief Superintendent Andrew Gould that critical national infrastructure is less likely to be attacked by ransomware groups, but beyond those entities, ransomware is one of the principal security threats to businesses. For so many small and medium-sized enterprises and smaller organisations, those attacks have the potential to be fatal to business models.

Photo of Ben Spencer Ben Spencer Shadow Minister (Science, Innovation and Technology)

I am more than happy to give way to the hon. Member for Harlow.

Photo of Christopher Vince Christopher Vince Labour/Co-operative, Harlow

I thank the Shadow Minister for remembering my consistency—I have not mentioned Harlow. How is the new Clause helpful, given the potential confusion it causes with listing a specific kind of incident as well as the generic one?

Photo of Ben Spencer Ben Spencer Shadow Minister (Science, Innovation and Technology)

The Opposition are trying to make it clear that ransomware needs to be in the scope of the reporting. It is really for the Minister to answer if he thinks there are problems with the new Clause, and if so, how the Government will go about taking that forward. The widespread and highly damaging nature of ransomware attacks—which are often perpetrated by criminal groups at scale and speed—means that regulators need to have a detailed oversight of this area to prevent those attacks from being deployed more widely. Therefore, the new clause is intended to ensure that all ransomware attacks on regulated entities are reported, regardless of severity or potential severity, so that the risks are picked up.

In tabling new clause 6, I am acutely aware of the existing reporting burden for regulated entities and regulators. Since tabling it, we have heard impactful evidence from Carla Baker from Palo Alto, who highlighted the number of cyber incidents and false positives that many companies encounter each day. As I said in response to an Intervention, in the absence of measures brought forward by the Government to address the widespread and urgent risks presented by ransomware attacks—and as the Government themselves identify as part of the Home Office’s review—it would be proportionate to make specific reference to ransomware in the reporting requirements on regulated entities in the Bill.

New clause 7 reflects the concerns of regulated bodies and industry representatives who have set out many, many times—in oral evidence and beyond—the need to ensure that reporting obligations are clear and, as far as possible, simplified across the many different incident reporting regimes that exist for providers of digital services. The new clause would compel the Secretary of State to publish an assessment of the impact of the new reporting regime on regulated entities in the Bill within 12 months of Royal Assent. Importantly, in line with the clear requests articulated by many stakeholders who gave evidence last Tuesday, it requires the Government to publish proposals for the creation of a single cyber incident reporting channel for relevant bodies.

Photo of Allison Gardner Allison Gardner Labour, Stoke-on-Trent South

I worked for the AI and digital regulations service in the NHS. We were linking with all of the regulators to try to have a one stop, one shop door approach to how we do things. It was incredibly difficult, and three years on we were still ironing out all the glitches. New Clause 7 is laudable, but because I know how difficult it is, a 12-month proposal is a very tight timeframe in which to try to get this right.

Photo of Ben Spencer Ben Spencer Shadow Minister (Science, Innovation and Technology)

I thank the hon. Lady for her Intervention. New Clause 7 puts forward an assessment of the impact. It is not intended to make definitive changes, but to give time. I have confidence in the Government and the Minister that within 12 months—it is the kiss of death to say that one has confidence at the minute, is it not? [Laughter.] I apologise to the Minister.

Photo of Allison Gardner Allison Gardner Labour, Stoke-on-Trent South

I will defend myself: my point was not a criticism of the Government. I just know how hard it is for regulators to work together and iron out cross-working. They were very confident in their information-sharing skills, but it is more difficult than that. It was just a kindly meant reminder that there is not an easy solution, and that 12 months is a bit of a tight timeframe.

Photo of Ben Spencer Ben Spencer Shadow Minister (Science, Innovation and Technology)

I very much take the hon. Lady’s point and the constructive spirit in which it was presented. Twelve months is a long time for the operations of Government to function, and I have faith—I will change my words—in the Government and all of their powers if they wanted to put their minds to bringing this forward. If there are concerns about the ability of the Department for Science, Innovation and Technology to take this forward, those concerns would spill over into all of the consultation requirements that have to be met to make sure that this Bill functions in the correct way. The argument on what we are debating today could swing both ways.

Industry stakeholders have expressed strong concerns regarding the diverse incident reporting requirements that exist in several pieces of legislation, including UK GDPR, sector-specific regulation and the Telecommunications (Security) Act 2021. As we have already discussed, the Home Office may also bring forward guidelines for reporting ransomware incidents in future. Additional reporting requirements and procedures included in the Bill are viewed as adding a further layer of complexity to a legislative environment that is already very challenging to navigate. Stakeholders report that the current approach, with multiple different reporting procedures and platforms, increases regulatory compliance costs on businesses and detracts from the resources available to implement effective improvements in cyber-resilience. In view of that, will the Minister support this urgently needed review Clause to assure industries that the Government have heard their serious and vital concerns on the matter?

Photo of Bradley Thomas Bradley Thomas Conservative, Bromsgrove

It is a pleasure to serve under your chairmanship, Dr Murrison.

When introducing new legislation, it is essential that those who fall under its new regulations be clearly identified and given adequate time to prepare for compliance. However, despite the aims of the Bill and the wish to avoid worsening a cyber-attack incident, the Bill still presents far too much ambiguity. It is right to recognise the cyber landscape as continuously evolving. There is no dispute that this terrain becomes increasingly complex each day, requiring a level of flexibility in legislation to ensure that it keeps pace. However, this desire to safeguard such adaptability, and the goal of future-proofing, must not come at the expense of the effectiveness of legislation in the present day.

The powers afforded to the Secretary of State to change the classification of essential activity, and to bring new sectors into scope of the Bill at any time, undoubtedly create uncertainty for many sectors and cast a Shadow over long-term compliance. To be clear, we want organisations to comply with this legislation. We want to improve national cyber-resilience, gather vital intelligence and restore public confidence in our security. Why, then, would there not be a significant effort to make these regulations as easy to apply as possible, rather than leaving thousands of businesses second-guessing whether they fall within scope, with the pressure of large financial penalties hanging over their heads?

In addition, many will know that I am a firm supporter of parliamentary process. I support the notion that all legislation should receive the scrutiny it is due by the democratically elected Members of the House of Commons. That is why I believe the Bill must not only set out clearer guidelines for who is in scope, but require an official Amendment, debated in the House, to permanently bring any new sectors into scope after the Bill has been passed.

I understand that, in times of emergency, the longer process of House of Commons scrutiny may not always be possible. That is why the Secretary of State should have powers to bring in sectors necessary in an emergency temporarily into scope, with less imposing of non-compliance penalties until their inclusion is made permanent by the House. Such an approach would not only allow for the quick reactions that cyber-security demands, but respect parliamentary processes and safeguard against organisations’ being unaware that they had suddenly been brought into scope until they received a potentially financially ruinous penalty notice for non-compliance.

Looking at the need for more definitive guidelines on who will be regulated under the Bill, we have already heard from numerous industry stakeholders that are unsure whether they, or other organisations in their sector, will fall within the mandatory scope. In addition, industry experts have publicly shared concerns about how far the net may be cast in some sectors, leading to the unintentional inclusion of organisations that are critical only to a single larger organisation, rather than to our national security, while ignoring other essential sectors altogether. Looking at recent cyber-attacks that have had a significant impact on our country, it is concerning that the definition of essential services may not include them within scope.

While it is predicted that many of Jaguar Land Rover’s supply chains will be in scope, it has been publicly questioned whether it will be included. As the largest car manufacturer in the United Kingdom, it directly employs over 30,000 people across the UK and supports around 100,000 jobs indirectly. It is therefore no surprise that the cyber-attack it endured, estimated to have had a financial impact of over £1 billion, was significant to many, including more than 5,000 organisations impacted and many of my constituents, with JLR being one of the largest direct and indirect employers in the west midlands region. How, then, if a key aim of the Bill is to ensure that all essential services whose disruption would profoundly impact our nation in the event of a cyber-attack report all major incidents, can the vagueness of the definition of essential services be allowed to stand—especially when it creates a situation in which previous key victims are excluded?

Of course, JLR is not the only victim where questions of inclusion remain. Also potentially falling outside the regulatory reach is Marks & Spencer, whose recent cyber-attack was another stark reminder of the rapidly advancing cyber-crimes scene and caused significant disruption, with costs estimated to run into the millions of pounds. Having met with M&S representatives recently, I had the opportunity to discuss their experience of enduring such an attack. Archie Norman, M&S chair, gave evidence to the Business and Trade Sub-Committee on Economic Security, Arms and Export Controls, where he said that “a growth economy” is “a cyber-resilient economy”.

Having a cyber-resilient UK, and making the UK the safest place to do business, is a competitive advantage. I agree with that sentiment and firmly believe that increasing our cyber-resilience can only benefit our economy. It is imperative that we get this right. These cyber-threats are not going away; they are only going to get stronger and more technically advanced. We have seen that in the past year, with the National Cyber Security Centre reporting a 50% increase in British cyber-incidents deemed highly significant. Indeed, representatives of M&S told me that, at times, they found it much easier to get updates and information from the United States FBI than they did from our own authorities. We also know that foreign hostile states are becoming bolder in their actions against us.

A few months ago—as a reason for introducing my ten-minute rule Bill, the Cyber Extortion and Ransomware (Reporting) Bill—I stated that research had revealed that 74% of UK IT leaders cited China and 71% cited Russia as their top cyber-security concerns. It is undisputable that last year’s espionage trials threw a harsh spotlight on the threatening scale of state-sponsored cyber-attacks.

Improving our national cyber-resilience, and safeguarding all our infrastructure and essential services, including in the private sector, is vital in order to secure a prosperous economy and reinforce public confidence in our ability to defend ourselves against such threats.

Photo of Emily Darlington Emily Darlington Labour, Milton Keynes Central 10:00, 10 February 2026

I have a few questions for the Minister. I appreciate the clarity that the Bill brings to many of the services in its scope. I would like to understand how the definition of “incidents” will relate to hardware vulnerabilities that are discovered within a company, as we heard from some of the people who gave evidence to the Committee. It is unclear in the Bill. Perhaps it will be further defined in secondary legislation.

I want to understand how an incident in which someone discovers a vulnerability in hardware—such as in a system-in-package—is reported, and how that information is then delivered by the regulator to other companies in the sector that may have similar technology, and to the other regulators, which may also want to flag that technology as a particular vulnerability. Is that defined as an “incident” or is it defined somewhere else in the Bill? I am a bit confused and am looking for some clarity.

Photo of Kanishka Narayan Kanishka Narayan Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)

Having been promoted from a position of mere confidence to faith, I will tackle questions from the hon. Member for Runnymede and Weybridge first and foremost. On the question of thresholds of incident, the Bill sets out the severity of the sorts of incidents that we expect reporting obligations to apply to, and at the same time it ensures that it is proportionate in understanding that sector-specific thresholds ought to be precisely that—sector specific, set closely with relevant entities in that sector, and working with the expertise of the relevant regulators. For that reason, it has not been specified more fully on the face of the Bill.

On information sharing, not only is there provision for the specific sets of purposes for which information sharing ought to take place between regulators, but there is a further check on the proportionality of that, through a particular requirement, to ensure that information that is shared in incident contexts is done precisely for the purposes set out in the Bill, and in a way that is proportionate.

My hon. Friend the Member for Milton Keynes Central raised the question of hardware impacts. While the focus of the Bill is primarily on network and information systems, the test, as I think of it, would look at whether any compromise in network and information systems related to a piece of hardware triggers the severity of the impact, or potential impact, to be reportable. In the event that it is reportable, in its severity and potential impact, it will require notification—to the regulator and, when customers are directly impacted in the way that is set out in the Bill, also to the customers. The test is focused on whether network and information systems are engaged, and whether the impact of any incident is likely to be severe enough, in light of the thresholds set out in the Bill.

Photo of Lincoln Jopp Lincoln Jopp Conservative, Spelthorne

My hon. Friend the Member for Bromsgrove raised the case of M&S, which would clearly be out of the scope of the Bill. However, it has a managed service provider, so it is a bit like the JLR case. I am still looking for some certainty as to whether JLR and M&S would come within the scope of the Bill by dint of the fact that they have managed service providers, which are within the scope. I am still not 100% clear on the answer to that question. I would be grateful for greater clarity from the Minister.

Photo of Kanishka Narayan Kanishka Narayan Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)

I hope this does offer the clarity that the hon. Member seeks. While I will not refer to specific businesses, broadly speaking the sector of food supply is not within the scope of the Bill; the obligations on operators of essential services or direct entities that are within the scope of the Bill will not apply.

However, if—in a hypothetical situation—a managed service provider within the scope of the Bill supplies to that business, the managed service provider would be within the scope of the Bill’s requirements. The customer—in this case, the food supply business—may, if the severity applies, be in receipt of reports from the relevant MSP, in this particular context. They will not be caught up in the full set of obligations in the Bill, but we would expect customers to be notified of incidents where the severity thresholds are met. I hope that gives the hon. Member some clarity.

Photo of Lincoln Jopp Lincoln Jopp Conservative, Spelthorne

I am grateful to the Minister for giving way a second time. I understand his answer, but, to be clear, if an incident that meets the severity threshold is reported to a client who is out of scope, would that bring any obligation to report in the normal way?

Photo of Kanishka Narayan Kanishka Narayan Parliamentary Under Secretary of State (Department for Science, Innovation and Technology)

Under the provisions of this Bill alone, only the entities specified as critical suppliers or operators of essential services—the relevant digital providers and so on—would be caught up in obligations if an event occurred. Assuming neither of those is true of a food supply business, the Bill’s provisions would not apply.

At the same time, in the sort of incident that the hon. Member describes, we would expect the NCSC to be deeply engaged, assuming severity thresholds and wider risks are applied. We would work closely on that operationally and I am sure we would look at how that business could be supported more widely. But the Bill’s provisions are really focused on the sectors, and entities within those sectors, that have an immediate threat to day-to-day operations such as a potential threat to life. There are reasons, which we can get into later, as we have done previously, why we set the sectoral scope in that way.

New Clause 6 seeks to clarify that a ransomware attack falls under the definition of “incident” within the NIS regulations. I share the concerns of the Shadow Minister and the hon. Member for Bognor Regis and Littlehampton about the significant disruption that ransomware attacks can cause. Indeed, last year we saw the impact of the ransomware attack on Synnovis, a supplier to the NHS, which resulted in the delay of 11,000 out-patient and elective procedure appointments. The hon. Member for Bognor Regis and Littlehampton and the shadow Minister are quite right that this kind of attack should be considered an incident under the NIS regime. Because of the changes to incident reporting introduced by the Bill, I can confirm to the Committee that ransomware attacks will be in scope.

The Bill updates the definition of “incident” so that it applies to any event that has, or is capable of having, an adverse effect on the operation or security of network and information systems. Ransomware attacks already fall well within that definition. Although I welcome the principle and intent behind the new clause, its content is already addressed by the Bill. I hope that assures hon. Members across the Committee.

New clause 7 would require the Government to publish a review of the new incident reporting regime within a year of the Bill’s receiving Royal Assent. It is important that the effectiveness of the NIS regulations, including the reforms to incident reporting introduced by the Bill, should be reviewed periodically. That is why the Bill requires the Government to conduct a review and lay it before Parliament once every five years. That timeframe will enable the new regime to bed in and allow a meaningful period of time to measure change before the Government report on its effectiveness. As my hon. Friend the Member for Stoke-on-Trent South said, notwithstanding her and the shadow Minister’s confidence in me and the Government, to publish a review after only one year would risk giving an incomplete picture, as regulators and regulated entities may still be transitioning to the new processes.

The new clause would also require the Government to publish proposals for a single reporting platform for cyber-incidents, again within a year of the Bill’s passing. We have heard the clear ask from businesses to minimise the time they spend filling in different reporting templates following an attack, to ensure they can prioritise the technical response. I share the concerns of the hon. Member for Bognor Regis and Littlehampton, and we are exploring all options to enable a proportionate and efficient reporting system. That said, setting a fixed time limit of one year to develop proposals does not reflect the inherent complexity of the task and the need to get it absolutely right for the businesses in scope of the Bill, not least because the proposals will need to be rigorously evidenced, consulted on and tested. For those reasons, I am unable to accept the new clause.

Question put and agreed to.

Clause 15 accordingly ordered to stand part of the Bill.

Clause 16 ordered to stand part of the Bill.

Clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.

clause

A parliamentary bill is divided into sections called clauses.

Printed in the margin next to each clause is a brief explanatory `side-note' giving details of what the effect of the clause will be.

During the committee stage of a bill, MPs examine these clauses in detail and may introduce new clauses of their own or table amendments to the existing clauses.

When a bill becomes an Act of Parliament, clauses become known as sections.

Secretary of State

Secretary of State was originally the title given to the two officials who conducted the Royal Correspondence under Elizabeth I. Now it is the title held by some of the more important Government Ministers, for example the Secretary of State for Foreign Affairs.

Ofcom

Ofcom is the independent regulator and competition authority for the UK communications industries, with responsibilities across television, radio, telecommunications and wireless communications services.

Ofcom Web Site http://www.ofcom.org.uk

Minister

Ministers make up the Government and almost all are members of the House of Lords or the House of Commons. There are three main types of Minister. Departmental Ministers are in charge of Government Departments. The Government is divided into different Departments which have responsibilities for different areas. For example the Treasury is in charge of Government spending. Departmental Ministers in the Cabinet are generally called 'Secretary of State' but some have special titles such as Chancellor of the Exchequer. Ministers of State and Junior Ministers assist the ministers in charge of the department. They normally have responsibility for a particular area within the department and are sometimes given a title that reflects this - for example Minister of Transport.

Opposition

The Opposition are the political parties in the House of Commons other than the largest or Government party. They are called the Opposition because they sit on the benches opposite the Government in the House of Commons Chamber. The largest of the Opposition parties is known as Her Majesty's Opposition. The role of the Official Opposition is to question and scrutinise the work of Government. The Opposition often votes against the Government. In a sense the Official Opposition is the "Government in waiting".

give way

To allow another Member to speak.

shadow

The shadow cabinet is the name given to the group of senior members from the chief opposition party who would form the cabinet if they were to come to power after a General Election. Each member of the shadow cabinet is allocated responsibility for `shadowing' the work of one of the members of the real cabinet.

The Party Leader assigns specific portfolios according to the ability, seniority and popularity of the shadow cabinet's members.

http://www.bbc.co.uk

intervention

An intervention is when the MP making a speech is interrupted by another MP and asked to 'give way' to allow the other MP to intervene on the speech to ask a question or comment on what has just been said.

House of Commons

The House of Commons is one of the houses of parliament. Here, elected MPs (elected by the "commons", i.e. the people) debate. In modern times, nearly all power resides in this house. In the commons are 650 MPs, as well as a speaker and three deputy speakers.

amendment

As a bill passes through Parliament, MPs and peers may suggest amendments - or changes - which they believe will improve the quality of the legislation.

Many hundreds of amendments are proposed by members to major bills as they pass through committee stage, report stage and third reading in both Houses of Parliament.

In the end only a handful of amendments will be incorporated into any bill.

The Speaker - or the chairman in the case of standing committees - has the power to select which amendments should be debated.