The UK Government has confirmed another pause to its draft digital legislation, with the data reform bill put on hold while Liz Truss’ cabinet reassesses.

While the bill was still largely based on the European Union framework, it contained tweaks in areas like personal data processing for things such as scientific research, public sector data use and sharing, as well as easing certain regulations for small businesses – all told, the Government claimed the changes would save businesses over £1bn over the next ten years.

However, these changes are now on pause with little indication as to where Liz Truss’ Government will take digital legislation next aside from the fact that a more sweeping move away from the GDPR could be on the cards.

The Announcement

The relative bombshell came during the Conservative Party speech on Monday when fresh-in-post secretary of state for digital, Michelle Donelan, announced that the party would be “replacing” GDPR, stating that it was a law we “inherited” from the European Union.

Replacing, she said, would be “our own business- and consumer-friendly British data protection system”.

Donelan went on to claim that a “simplification” of the current system would ease the burden of legislative “red tape” on small businesses, unlocking economic potential for the UK as a whole.

She claimed the need for a “truly bespoke”set of privacy rules to replace the “one-size-fits-all” in the GDPR.

“Our plan will protect consumer privacy and keep their data safe while retaining our data adequacy so that businesses can of course trade freely,” said Donelan.

She added: “I can promise to you here today… that it will be simpler, it will be clearer for businesses to navigate — no longer will our businesses be shackled by lots of unnecessary red tape.”

Donelan sought to back up her claim that reduced red tape can unlock economic growth, citing a working paper penned by researchers based at Oxford University — suggesting they found the GDPR “caps” businesses profits by 8%.

She concluded: “Our new data protection plan will focus on growth and common sense, helping to prevent losses from cyber attacks and data breaches, while protecting data privacy.

“This will allow us to reduce the needless regulations and business stifling elements, while taking the best bits from others around the world to form a truly bespoke, British system of data protection.”

UK Data Protection’s Tumultuous History

Ever since the EU referendum vote in 2016, the UK Government has toyed with the idea of reworking the data protection framework.

As time has worn on, the consensus has moved more and more away from largely sticking to the pan-European Union legislation and moves towards deregulation.

This not only includes a move away from GDPR, but further changes to the much-touted Online Safety Bill, as Donelan confirmed the government would be tweaking the bill to address free speech concerns. Considering that this bill had reached its third hearing, it may now run out of time before the next general election and have to be shelved.

In her speech, Donelan said the government will work with businesses to “co-design” legislation, suggesting the rethink could be more wholesale than what’s being actually suggested.

She said: “I will be involving them [businesses] right from the very beginning, starting in the design so that together we can create a tailored, business friendly system — one that protects the consumer, protects data adequacy, increases the trade and that also is a good data protection system that enables us to create an increased productivity and enables us to avoid the pitfalls of a one-size fits all system.

“It is truly time that we seize this post-Brexit opportunity — that we unleash the future growth potential of our British business.”

Comment

Natalie Cramp, CEO of data science company Profusion, reacted to Government proposals to introduce new legislation to replace GDPR, saying:  “The announcement that the Government will pause its reform of GDPR in favour of introducing a new data bill adds more unwelcome uncertainty for UK businesses.

“On a practical level it’s difficult to see how a new bill could be written and passed with adequate consultation ahead of the next General Election. As Labour has a very different take on GDPR, it’s very hard to say what the final outcome will be.

“We could see the Conservatives passing this legislation in 2024, a Labour Government confirming that GDPR will remain, or an entirely different approach which may not be finalised until 2025 or beyond.

“Without any clarity it makes it very difficult for companies, especially in the tech industry, to make concrete plans on how they expand. Creating a large customer base in Europe could prove a costly risk if the UK’s new data regime is significantly at odds with GDPR.

“The EU may revoke the UK’s ‘adequacy’ status which will mean UK businesses that deal with EU citizen’s data will face large costs and compliance hurdles. Similarly, it will make the UK a less attractive location for foreign companies because they will have to deal with legal and operational costs complying with two different data regimes.

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“GDPR is not a perfect piece of legislation but it is a huge improvement on what came before. It puts consumers in control of their own data and online privacy and this principle needs to be protected.

“There is an opportunity for the UK Government to have the best of both worlds by tweaking GDPR to remove some unnecessary burdens, such as around FOI requests, while also retaining its adequacy status with the EU. This would make the UK particularly attractive to US businesses seeking an operating base for the EU.

“If the Government really believes it is necessary to reform GDPR, it either needs to move quickly to introduce some minor amends or provide a very clear roadmap on how and when more wide-ranging reform will take place. Continuously changing direction keeps the whole tech industry in limbo and does little to help business confidence.”

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