The Chair of the Commons Business and Trade Committee has highlighted that the UK’s economic security regime is unprepared for modern threats and called for the establishment of a cyber backstop to protect critical national infrastructure.
The Committee's report warns that the UK is increasingly vulnerable to cyberattacks and other forms of economic coercion. It cited the August cyberattack that froze Jaguar Land Rover operations, triggering over £1.5 billion in state guarantees to safeguard 120,000 supply chain jobs, as an example of the potential economic impact.
Industry sources have raised concerns over unclear lines of responsibility and moral hazard, highlighting the absence of a coordinated framework to manage such threats.
Rt Hon Liam Byrne, chair of the Committee, said the UK is “hugely exposed to the risks of economic warfare,” particularly given its reliance on foreign capital, technology, and critical infrastructure. He emphasised the need for a comprehensive doctrine incorporating six principles -- detect, deter, diversify, develop, defend and dovetail. Central to this is a cyber backstop that ensures both public and private sectors can respond rapidly and effectively to disruptive attacks.
The report proposes an Economic Security Bill to formalise this approach, along with the creation of an Office for Economic Security to oversee implementation, coordinate policy, and integrate intelligence on cyber and economic threats. It also calls for the reinstatement of the Economic Security Sub-Committee within the National Security Council and a dedicated ministerial role to provide long-term oversight.
The Committee argued that a cyber backstop is essential to protect UK businesses, supply chains, and national interests, while providing clarity on responsibilities between government and private sector actors.
Such measures aim to mitigate the risk of future economic disruption, safeguard jobs, and ensure that the UK is better prepared for a new era of digital and economic threats.
By establishing these safeguards, the UK could strengthen resilience against cyber incidents and broader economic coercion, aligning itself more closely with international allies and creating a more secure environment for domestic industry and foreign investment.
