Lords Grand Committee — sitting of 1 September 2026: transcript & video · Polyfact

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Lords Grand Committee

1 September 2026

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Contents updated on 1 Sept 2026

The committee stage opens on Clause 1 with debate over new vendor national security direction powers and how flexibly they should be exercised, before moving to whether NIS-style obligations should extend to SMEs, data centres and managed service providers based on risk rather than size thresholds, and how this aligns with the Bill’s overall institutional responsibilities and support for UK tech growth.

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Early clauses — vendor powers and NIS scope

15:33

Opening of committee stage and new vendor powers

15:33

Committee stage opening and introduction of vendor powers

15:33

Committee procedure: Clause 1 agreed, Amendment 1 called

15:33

Baroness Lloyd: new vendor cyber-risk direction powers

15:55

Minister: consultation on referral framework and backstop powers

20:11

Liberal Democrat scrutiny of vendor direction and AI scope

21:08

Lord Clement-Jones: challenge to late amendments and vendor direction powers

21:08

Lord Clement-Jones: AI scope, mandatory referrals and constitutional safeguards

24:48

Peers: AI scope, machinery of government and vendor regime

26:50

Backbencher: AI scope and machinery of government changes

26:50

Backbench concerns: parliamentary procedure, GCHQ role and need for briefing

29:50

Opposition frontbench: support in principle, concern over strategy and department

33:18

Voluntary vs mandatory referrals and vague economic tests

36:17

Minister: rationale for vendor powers and AI coverage

39:36

Minister: justification for vendor powers and referral backstop

39:36

Minister: scrutiny assurances, AI scope and reconsideration asks

42:52

NIS Bill — SME and data centre scope

47:46

Procedural wrap‑up and new scope amendments

47:46

Amendment 1 withdrawn and clauses 2–3 agreed

47:46

Baroness Kidron: small data centres in scope

49:15

Baroness Kidron: SME exemptions and Online Safety lessons

52:12

Peers support broader, risk‑based NIS coverage

56:22

Baroness Harding: telecoms experience of small critical nodes

56:22

Lord Clement-Jones: risk-based scope and managed services definition

58:21

Backbencher: propose severity scale for risk assessment

01:03:19

Managed service providers and SME scope

01:06:07

Minister: small providers, MSP scope and load control

01:06:07

Kidron follow‑up: market concentration and SME exclusion

01:12:07

AI and Cyber Bill — scope, frontier risks and ministerial position

01:15:27

Opening AI scope debate in Cyber Bill

01:15:27

Committee transition to AI scope amendments

01:15:27

Committee procedure: Amendment withdrawn, clauses 4–6 agreed

01:15:27

Baroness Kidron: probing AI as relevant digital services

01:16:13

AI red lines and statutory role for AISI and AI Council

01:20:11

Baroness Kidron: AI red lines and AC independence

01:20:11

Lord Tarasenko: recent AI cyber incidents and emerging agent risks

01:24:27

Lord Tarasenko: statutory powers for AISI and AC

01:28:55

Frontier AI risks, red lines and shutdown powers

01:33:02

Peers: AI red lines, shutdown powers and AC mandate

01:33:02

Baroness Harding: absence of AI Bill and need for red lines and shutdown powers

01:33:02

Backbencher: AI gap in Bill and AC’s role

01:36:54

National security peer: precautionary principle and Amendment 75

01:41:51

Support for AI red lines and last-resort powers

01:43:52

Lord Clement-Jones: emergency AI kill switch and AC integration

01:45:10

AI Council governance and emergency powers debate

01:53:56

Minister: reservations on expanding AC’s statutory role

01:53:56

Backbencher: scepticism on AC powers and support for AI kill switch

01:55:33

NIS Bill — AI scope and Minister’s defence

02:01:58

AI scope under NIS Bill — Minister’s position and peer challenge

02:01:58

Minister: all‑hazards NIS approach and rejection of AI service scope

02:01:58

Minister: opposition to AI red lines and AC regulatory role

02:06:01

Baroness Kidron: NHS vulnerability and AISI remit

02:13:46

Minister: clarification on AI services outside NIS scope

02:16:39

Cyber resilience governance, amendments and supplier scope

02:18:07

Office of Cyber Resilience — mandate, scope and regulatory model

02:18:07

Lord Bert: Amendment 7 and Office of Cyber Resilience

02:18:07

Lord Bert: moves Amendment 7 and proposes OCR

02:18:07

Lord Bert: extend scope beyond 12 sectors and include public sector

02:21:26

Lord Bert: supplier obligations and emerging technologies

02:23:58

Lord Bert: cyber skills pipeline and OCR’s adaptive remit

02:27:32

Economic impact of cyberattacks and case for OCR

02:30:23

Lord Londesborough: economic cost of cyberattacks and case for OCR

02:30:23

Lord Londesborough: SME exposure, MSP standards and certification register

02:34:43

Backbencher: JLR attack and case for single cyber regulator

02:37:56

Regulatory architecture for cyber resilience — single vs coordinated model

02:42:58

Senior peer: balance between single regulator and coordinated sectoral model

02:42:58

Lord Clement-Jones: support for OCR and expanded software provider scope

02:47:44

Regulatory model, scope and funding of cyber resilience

02:51:56

Opposition frontbench: resourcing regulators and missing national cyber strategy

02:51:56

Minister: defence of multi-regulator regime and audits

02:55:44

Minister: scope of essential services and software providers

03:00:44

Cost recovery query, OCR amendments withdrawn and Clause 7 agreed

03:05:06

Peers’ amendments — fraud, quantum and cyber resilience

03:10:04

Baroness Ludford — fraud risks and cyber workforce

03:10:04

Amendment 10 — fraud risks for digital service providers

03:10:04

Cyber workforce competence and youth education

03:14:59

Amendment 82 — quantum decryption threat and strategic priorities

03:17:06

Amendment 82 — emerging quantum decryption threat

03:17:06

Quantum post‑cryptography — role of strategic priorities

03:20:11

Peers’ amendments — fraud, quantum, skills and governance

03:22:18

Lord Clement‑Jones: fraud scope and cyber skills standards

03:22:18

Lord Clement‑Jones: quantum timelines, consultations and review cycle

03:25:44

Conservative frontbench: corporate reporting, ISACs, action plan and funding

03:29:07

Minister’s cyber framework and move to Clause 12

03:34:16

Minister — cyber risks, ISACs and review framework

03:34:16

Minister: fraud, quantum risk and rejection of certification safe harbour

03:34:16

Minister: ISACs, regulator cost recovery and fines

03:39:09

Minister: review cycle, annual reports and supply‑chain focus

03:43:23

SSP technology focus, amendment withdrawal and clauses 8–11 agreed

03:49:02

SSP technology risks clarification and Amendment 10 withdrawn

03:49:02

Committee procedure: Clauses 8–11 agreed, move to Clause 12

03:52:54

New Clause 12 — critical suppliers and SME scope

03:54:28

Lord Bathurst: critical suppliers beyond direct contracts

03:54:28

Lord Ravensdale: SME critical supplier scope and IR35 analogy

03:56:33

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Lords Grand Committee

1 September 2026

Lords Grand Committee Tue, 1 Sept 2026 Actual start 15:30 House of Lords

15:32 - 15:54

Speaker 2

The question is that clause 1 stands part of the bill. As many as are of that opinion will say content. The contrary not content. The contents have it. In clause 2, amendment 1, Baroness Lloyd.

15:54 - 16:45

Speaker 1

Thank you.

My Lords, I beg to move amendment 1, after which I will also speak to the other amendments in my name in this group. First, let me thank noble Lords for their constructive engagement on this topic over the summer recess, with particular thanks to the noble Viscount Lord Camrose and his colleagues for sending their questions in advance. I will seek to address those in my opening remarks. This package of amendments introduces new powers that will enable the UK to address vendor-related cyber risks in our critical infrastructure. The principal new clause introduces a new direction power.

It enables the Secretary of State to direct entities in scope of the power where they are using or may potentially use vendor-supplied goods, services, or facilities in connection with their network and information systems that could create national security risks.

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