Précis - The Government has announced the creation of a cyber security institute.

What? The Government announced the creation of a cyber security research institute, to be partly funded by a £3.8 million grant. The institute has been established by Government Communications Headquarters in partnership with the Engineering and Physical Sciences Research Council and the Department for Business, Innovation and Skills (BIS) to investigate "the science of cyber security". The virtual organisation will be based at University College London and led by Professor Angela Sasse. The institute will open on 1 October 2012 and run for a period of three and a half years.

So what? This is further evidence of the UK's step-up in terms of cyber security. It's a real issue which government is prepared to throw resource at.

The institute will bring together social scientists, mathematicians and computer scientists from seven UK universities (University College London, University of Aberdeen, Imperial College, Queen Mary College and Royal Holloway, University of London, Newcastle University and Northumbria University) to tackle cyber security challenges. The institute will also connect researchers with security industry experts and other international researchers.

The institute is part of the Government's National Cyber Security Strategy aiming to improve the UK's ability to protect itself from cyber attacks. Currently 8% of the UK's GDP is generated from the internet and this will grow in coming years. BIS believes that senior business leaders do not currently take enough of an interest in protecting their businesses from cyber threats.

The institute's research is intended to assist businesses, individuals and government in safely benefiting from the opportunities that the internet offers. Ultimately, the aim is to make the UK one of the most secure places in the world to do business online.