UK government to explore holding software developers liable for cybersecurity breaches
Published: 28/10/2026
| The Record
The UK government has announced plans to consult next year on holding technology companies liable for cybersecurity breaches resulting from insecure software.
The commitment, published in the HM Treasury's 2026 Budget document (top of page 81), addresses increasing concern in Westminster over the economic impact of cyberattacks. The consultation will explore ways to mitigate insecure technology at source and determine where liability for cyber breaches should sit. The initiative builds on an ongoing product liability review by the Law Commission of England and Wales.
The policy change follows pressure from the National Cyber Security Centre (NCSC) Chief Technology Officer (CTO) Ollie Whitehouse.
Options under consideration include expanding the Product Security and Telecommunications Infrastructure (PSTI) Act, which currently sets minimum security standards for consumer connected devices. Crucially, the government aims to align its proposals with EU software cybersecurity regulations to prevent duplicative compliance burdens for commercial vendors.
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