Overview of Consultation

16. The government recognises the value of positive adequacy decisions in allowing personal data to be transferred without any additional safeguards between the UK and adequate third parties. Adequacy decisions are just one mechanism to enable international data transfers, however. Many alternatives exist, some of which are widely used already. To support trusted data flows across the world, these alternative mechanisms, such as Standard Contractual Clauses (SCCs), must continue to be readily available, flexible and straightforward to implement. The government will continue to improve the design of alternative data transfer mechanisms, alongside further engagement with international partners to ensure the global regulatory framework enables trusted, free flow of data.

Overview of Consultation

17. This consultation is the first step in delivering on Mission 2 of the National Data Strategy to secure a pro-growth and trusted data regime. The government is committed to working with partners across all sectors and parts of the UK to secure an even better data regime and it has already engaged with the ICO.

18. This consultation is the first step in the process of reforming the UK’s regime for the protection of personal data. Consultation responses will provide evidence to help shape any future reforms. Throughout this consultation, the government welcomes views on its proposals and further opportunities to create an even better data protection regime.

19. The government is taking an evidence-based approach to developing these proposals. Our initial economic analysis shows that our reform package will have a net direct monetised benefit of £1.04 billion over 10 years, even after accounting for potential costs incurred through any future changes to the UK’s EU adequacy decisions. This is driven by unlocking more research and innovation, while easing the cost of compliance for businesses. This is before accounting for the potential benefits to UK trade, although these impacts can be difficult to quantify. Further details on our analysis and modelling assumptions can be found in the draft impact analysis published alongside this consultation.

20. The reform proposals will also offer further benefits that are more difficult to quantify in economic terms. For example, the proposals in Chapter 1 on clarifying the circumstances in which data can be processed for legitimate interests could give data controllers greater confidence to process data for law enforcement and safeguarding purposes, for example, with benefits for the wider public. The proposals in Chapter 4 should lead to better data-sharing between public authorities and increased transparency of their processing activities should lead to more effective delivery of public services and higher levels of public trust.

21. These proposals will also enhance the ability of our law enforcement agencies and UK Intelligence Services to protect public safety and national security. This reform agenda can reduce differences and improve consistency across the general, law enforcement and national security frameworks for data processing. It will provide greater legal clarity and increase public confidence in the sharing of data processed in the public interest, including for law enforcement and national security purposes.

22. The government is giving due consideration to the public sector equality duty, under the Equality Act 2010, as it develops these proposals. The government believes that proposals to, for example, enable organisations to process personal data for the purpose of monitoring and mitigating bias in AI systems may help to reduce inequality. The government is preparing a full

public sector equality duty assessment for these proposals and would also welcome views on the extent to which any of the reform options below may have an impact under the Equality Act 2010.

23. Finally, the government expects to influence the international debate on data protection and the design of data protection regimes in other jurisdictions. The UK will advocate globally for the principles that drive our proposed reforms to be adopted by international partners who share our values and seek to maximise the potential of responsible data use. Further benefits will flow to the UK, as well as globally, if these principles are more broadly adopted, leading to better and more interoperable data protection regimes in other jurisdictions.

24. Responses to this consultation will help to shape any future reforms. Views are also sought on a number of emerging policy areas on which further evidence will help to build and assess the case for legislative change. Details on how to respond, including the length of the consultation period, are at the end of this document.