How the Data Protection Act's death will punish the UK economy
If the UK hands over data protection duties to the EU, it will scare off future foreign investment, says Tom Brewster.


Companies who want to make exciting products quickly, who subscribe to Facebook's 'Move Fast and Break Things' mentality, will only be put off by such stifling legislation. Why not just look elsewhere, Asia for instance, where regulators won't be breathing down their necks at each stage of a product's lifecycle? It wouldn't make business sense for them to stay in the UK or anywhere else in Europe. Put simply, the stakes are very high here.
Although the UK's data protection laws could do with tightening up, and the Information Commissioner's Office could show its teeth more when dealing with private companies, the European Commission is going too far with its plans. If the UK does let the Data Protection Act rot, it will put up another barrier for entry.
The EU's draconian plans will take us back to the dark ages where companies are choked by excessive regulation.
"Businesses like Ireland because of its tax laws and they like the UK because of its liberal data protection laws," said Stewart Room, partner at Field Fisher Waterhouse.
There are already a host of reasons why businesses don't want to settle over here. Capital gains tax is one, which effectively punishes those who take risks and win big, when they should instead be rewarded. Then there's the hefty income tax on the wealthy. The cap on immigration is another, potentially preventing talented techies from moving to the UK.
If the Government relinquishes control over data protection too, it won't just create a business environment as inviting and comfortable as a bed of nails; the EU's draconian plans will take us back to the dark ages where companies are strangled with red tape.
But does Room think the Coalition will keep the DPA alive? "They've already given it up," he said. Ah time to batten down the hatches then.
Get the ITPro daily newsletter
Sign up today and you will receive a free copy of our Future Focus 2025 report - the leading guidance on AI, cybersecurity and other IT challenges as per 700+ senior executives
Tom Brewster is currently an associate editor at Forbes and an award-winning journalist who covers cyber security, surveillance, and privacy. Starting his career at ITPro as a staff writer and working up to a senior staff writer role, Tom has been covering the tech industry for more than ten years and is considered one of the leading journalists in his specialism.
He is a proud alum of the University of Sheffield where he secured an undergraduate degree in English Literature before undertaking a certification from General Assembly in web development.
-
The UK cybersecurity sector is worth over £13 billion, but experts say there’s huge untapped potential if it can overcome these hurdles
Analysis A new report released by the DSIT revealed the UK’s cybersecurity sector generated £13.2 billion over the last year
By Solomon Klappholz
-
"Thinly spread": Questions raised over UK government’s latest cyber funding scheme
The funding will go towards bolstering cyber skills, though some industry experts have questioned the size of the price tag
By George Fitzmaurice
-
Forcing Apple to allow alternative app stores might cause major security risks
Analysis Apple will be forced to allow third-party marketplaces on its devices, but some experts have raised serious security concerns
By Solomon Klappholz
-
Top data security trends
Whitepaper Must-have tools for your data security toolkit
By ITPro
-
Why bolstering your security capabilities is critical ahead of NIS2
NIS2 regulations will bolster cyber resilience in key industries as well as improving multi-agency responses to data breaches
By ITPro
-
New EU vulnerability disclosure rules deemed an "unnecessary risk"
News The vulnerability disclosure rules in the Cyber Resilience Act could also cause a “chilling effect” on security researchers
By Ross Kelly
-
Are you ready for NIS2?
WEBINAR Find out what you should be doing to prepare for the EU’s latest data protection regulation and UK equivalent with our free webinar
By ITPro
-
Threat of cyber attacks to national security compared to that of chemical weapons
News The UK government has raised the threat level posed by cyber attacks, deeming it greater on average than an event such as the Salisbury poisoning
By Rory Bathgate