New research from the Cyber Security Insights Report 2022 has found that budgets for cyber security in UK companies are set to increase by 11% over the next 2-3 years.
However, with the currently high rate of inflation in the UK, this effectively translates into cuts to their cyber security budgets until 2025, with 13% of respondents reporting that they expected their budgets to decrease in that time frame.
More Emphasis On Cyber Security Within Organisations
The report also found that, on average, cyber security makes up 25% of annual IT budgets, marking a five percent average growth in UK cyber security spending compared to survey responses from 2021.
This indicates that even with the market disruption seen over the past year, companies remain focused on investing in cyber security to protect their organisation and drive business growth.
With this in mind, an average of 11% growth may not be enough to counter inflation; cyber security threats will continue to rise, insurance coverage may shrink, and compliance regulations will adapt as the digital landscape in the UK evolves.
Why Cyber Security Budgets Are Increasing
With the threat of cyber breaches climbing, it’s clear why organisations need to keep investing in their online security. The report identified some of the critical reasons that UK companies were increasing their cyber security budgets:
– Staying secure against evolving threats (40%)
– Ensuring IT infrastructure remains compliant (38%)
– Board-level executives have an increased focus on cyber security (38%)
Smaller companies reported that they were more likely to use between 40-60% of their IT budgets on cyber security, with larger companies allocating less of their budget to maintaining and improving their online security.
What The Future Holds For Cyber Security
While the projected budget increases for online security sound promising, cyber security departments will only deliver if their budgets can accommodate the necessary resources. This means that more budget may be required to counter inflation and ensure that organisations stay ahead of potential security breaches.
While smaller, more agile companies may be better equipped to dedicate more resources to their cyber security budget, larger organisations also need to consider the risk of not appropriately investing in their cyber security department.
To learn more about cyber security and how it impacts your company, read the latest news here.
