British Businesses to Save Billions Under New UK Version of GDPR

The Data Protection and Digital Information Bill was first introduced last Summer and paused in September 2022 so ministers could engage in a co-design process with business leaders and data experts – ensuring that the new regime built on the UK’s high standards for data protection and privacy, and seeks to ensure data adequacy while moving away from the ‘one-size-fits-all’ approach of European Union’s GDPR.

Data is fundamental to fuelling economic growth in all areas of society from unlocking medical breakthroughs to helping people travel, manage their finances and shop online. It is vital to the development and use of innovative technologies such as artificial intelligence.

Data-driven trade generated 85 per cent of the UK’s total service exports and contributed an estimated £259 billion for the economy in 2021.

The improved bill will:

• Introduce a simple, clear and business-friendly framework that will not be difficult or costly to implement – taking the best elements of GDPR and providing businesses with more flexibility about how they comply with the new data laws

• Ensure our new regime maintains data adequacy with the EU, and wider international confidence in the UK’s comprehensive data protection standards

• Further reduce the amount of paperwork organisations need to complete to demonstrate compliance

• Support even more international trade without creating extra costs for businesses if they’re already compliant with current data regulation

• Provide organisations with greater confidence about when they can process personal data without consent

• Increase public and business confidence in AI technologies by clarifying the circumstances when robust safeguards apply to automated decision-making

Data reforms are expected to unlock £4.7 billion in savings for the UK economy over the next 10 years and maintain the UK’s internationally renowned data protection standards so businesses can continue to trade freely with global partners, including the EU.

Science, Innovation and Technology Secretary Michelle Donelan said:

“Co-designed with business from the start, this new Bill ensures that a vitally important data protection regime is tailored to the UK’s own needs and our customs.

“Our system will be easier to understand, easier to comply with, and take advantage of the many opportunities of post-Brexit Britain. No longer will our businesses and citizens have to tangle themselves around the barrier-based European GDPR.”

“Our new laws release British businesses from unnecessary red tape to unlock new discoveries, drive forward next generation technologies, create jobs and boost our economy.”

Alongside these new changes, the Bill will increase fines for nuisance calls and texts to be either up to four per cent of global turnover or £17.5 million, whichever is greater, and aims to reduce the number of consent pop-ups people see online, which allow websites to collect data about an individual’s visit.

The Bill will also establish a framework for the use of trusted and secure digital verification services, which allow people to prove their identity digitally if they choose to do so. The measures will allow customers to create certified digital identities that make it easier and quicker for people to prove things about themselves.

The Bill will strengthen the Information Commissioner’s Office (ICO) through the creation of a statutory board with a chair and chief executive, so it can remain a world-leading, independent data regulator and better support organisations to comply with data regulation.

Julian David, TechUK CEO, said:

“TechUK welcomes the new, targeted package of reforms to the UK’s data protection laws, which builds on ambitions to bring organisations clarity and flexibility when using personal data.”

“The changes announced today will give companies greater legal confidence to conduct research, deliver basic business services and develop new technologies such as AI, while retaining levels of data protection in line with the highest global standards, including data adequacy with the EU.”

Chris Combemale, Chair of the DPDI Business Advisory Group and CEO of the Data & Marketing Association (DMA UK), said:

“The DMA has collaborated with the government throughout the Data Protection and Digital Information Bill (DPDI)’s development to champion the best interests of both businesses and their customers. We are confident that the bill should act as a catalyst for innovation and growth, while maintaining robust privacy protections across the UK – an essential balance which will build consumer trust in the digital economy.”

John Edwards, UK Information Commissioner, said:

“I welcome the reintroduction of the Data Protection and Digital Information Bill and support its ambition to enable organisations to grow and innovate whilst maintaining high standards of data protection rights. Data protection law needs to give people confidence to share their information to use the products and services that power our economy and society.

“The Bill will ensure my office can continue to operate as a trusted, fair and independent regulator. We look forward to continuing to work constructively with the Government to monitor how these reforms are expressed in the Bill as it continues its journey through Parliament.”