The NHS and a number of British businesses could soon face unprecedented higher costs if certain data protection standards are allowed to expire, a report has warned.
At present, the UK has been granted ‘data adequacy’ status, which means British data safeguards and legal protections align closely enough with EU regulation that it allows for the free exchange of data back and forth.
This allows the NHS and to UK businesses by keeping information sharing seamless, which saves time and money. However, this status expires in June 2025, and the decision must be made to extend the status or let it expire.
Significant extra costs and burdens
A letter from the Lords European Affairs Committee to the Government outlined the difficulties British organisations will face if the UK loses data adequacy status. After a seven-month enquiry, the committee found a number of risks associated with a loss to the UK’s status.
“The UK’s current GDPR regime is far from perfect. But the consequences of not reaching agreement with the EU are extremely harmful. There is clearly scope to reform and improve GDPR as part of the Government’s new Digital Information and Smart Data Bill. But this must not jeopardise the UK’s adequacy status,” said Committee Chair, Lord Peter Ricketts.
Without data adequacy status, the commission warned the UK’s public sector organisations, such as law enforcement agencies and the NHS, will face serious barriers making data sharing more expensive and a much more complicated process, which would lead to delays in crucial public services.
The committee also warned losing the status would have an adverse impact on Northern Ireland under the Good Friday Agreement and its ability to share information across the border.
The compliance, administrative, and legal costs associated with losing data adequacy would more than likely lead to higher consumer prices and a damage to the reputation of the UK.
There’s been a clear push from the new Labour Government to make the UK a more attractive investment opportunity, but this could be undone if companies face further barriers to international trade and economic cooperation.
The committee recommended the Government engage with EU stakeholders and the omission to ensure any planned reform to GDPR regulations keep the UK in line with data adequacy boundaries.
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