The House of Lords committee has called on the Government to start early discussions with the European Commission regarding the renewal of a data adequacy agreement to prevent additional costs and bureaucracy that could impact the economy.
The current data adequacy agreement between the UK and the EU is set to expire in June 2025. If not renewed, it could lead to new obstacles and go against the Government’s goals of economic growth and improving relations with the EU.
Lord Ricketts, chairman of the European Affairs Committee, emphasized the importance of reaching an agreement to ensure the seamless flow of data, which is crucial for trade, economic ties, and law enforcement cooperation between the UK and the EU.
During the committee’s seven-month inquiry, experts warned that losing data adequacy status could not only create challenges for businesses and organizations but also result in significant additional costs for consumers. It was estimated that UK businesses could face compliance costs of around £1 billion if adequacy status is not maintained.
Lord Ricketts also highlighted the opportunity for the Government to review and enhance the UK’s current data protection laws as part of the process. While acknowledging that the GDPR regime in the UK is not perfect, he stressed the importance of not compromising adequacy status in the pursuit of reform.
In conclusion, the committee recommended that securing timely agreement on data adequacy should be a priority for the Government to avoid potential disruptions in data flows and protect the UK’s economic interests. The negotiations present an opportunity to strengthen data protection laws in the UK while maintaining adequacy status with the EU.