London Digital Security Centre (LDSC)

The LDSC works in line with the Mayor’s Police and Crime Plan to support small and medium sized companies protect themselves against cybercrime. They deliver services direct to business through local and networked engagement activity and work to help victims reduce the risk of being re-victimised. This money will help support this delivery, and support cash flow. The money will also enable development to the next stage of delivery, which is anticipated to run over the next six months. The sum to be granted to the LDSC is £300,000. This sum would be payable in instalments subject to certain delivery criteria being met.

To authorise the grant of £300,000

1. Introduction and background

The London Digital Security Centre, LDSC, was created by the Mayor’s Office for Policing and Crime. Modelled on the Scottish Resilience Centre’s work in cyber security, the LDSC was to enhance the ability of small and medium sized enterprises, SME’s, to protect themselves from cyber-crime.

The LDSC has developed a business model which it is in the process of rolling out. This will be subject to close evaluation and market testing. Although the LDSC has been successful in raising income during this year, the expenses incurred in developing the model have been in excess of this. Like many small companies it finds itself challenged over its cash flow position now and going forward.

2. Issues for consideration

The Company has achieved a great deal in its short existence and is now seen as a valued source of expertise and advice within the cyber-crime arena. Through its unique position as a partner of both the Metropolitan Police and the City of London Police it is well placed to provide support to SME’s. It has developed to an advanced state a business model to deliver real enhanced provision to companies, and is now establishing an economic model that should see it move away from the need for public subsidy through to self-sufficiency. While this embeds and is fully tested the LDSC is facing cash flow issues. This was anticipated and provision had been made in the MOPAC budget to offer support this year. This has now been applied for by the Directors of the LDSC.

It is accepted that this extra funding is needed but it is important that it is provided on a basis of need and on the basis that the economic model is properly tested and evaluated. Hence although part of this money will be paid immediately, the majority will be paid subject to the economic model being validated and tested.

3. Financial Comments

There is financial provision for this money within the MOPAC budget for 2017/18.

4. Legal Comments

Legal advice has been obtained relating to the LDSC and nothing to prevent this funding has been identified.

5. Equality Comments

There is no adverse impact from making this payment, the LDSC is the only company in this market position.

6. Background/supporting papers

For reasons of commercial sensitivity further detail is contained in Part 2.