British businesses to save billions under new UK version of GDPR

The new UK version of the EU’s GDPR will reduce costs and burdens for British businesses and charities, remove barriers to international trade, and cut the number of repetitive data collection pop-ups online.

The strengthened data regime will save UK economy more than £4 billion over the next 10 years and ensure that privacy and data protection are securely protected.

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-driven trade generated 85 per cent of the UK’s total service exports and contributed an estimated £259 billion to 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

The 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.

Alongside these new changes, the bill will increase fines for nuisance calls and texts to be either up to 4 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.