London Daily

Focus on the big picture.
Saturday, Oct 17, 2026

EU rules UK data protection is ‘adequate’ in boost for business

EU rules UK data protection is ‘adequate’ in boost for business

Decision that allows information to continue to flow to and from UK could be revoked ‘immediately’
British data protection standards are “adequate”, the EU has ruled in a long-awaited decision that lets digital information continue to flow between the UK and the bloc. But Brussels warned Boris Johnson’s government the decision could be revoked “immediately” if it sees weakening UK standards.

Failure to get a positive decision would have risked plunging British businesses into disarray, leaving industries from banking to logistics scrambling to set up more costly, bureaucratic alternatives to share data.

The UK will retain “adequate” status for four years, but the commission warned that could be withdrawn at any time if UK law was no longer deemed to offer EU citizens protection over how their data was used.

The European Commission vice-president Věra Jourová said: “The UK has left the EU but today its legal regime of protecting personal data is as it was. Because of this, we are adopting these adequacy decisions today.”

She added that the commission had listened “very carefully” to concerns expressed by the European parliament, EU members and the European Data Protection Board, “in particular on the possibility of future divergence from our standards in the UK’s privacy framework”.

Under pressure from the European parliament, the commission put a four-year sunset clause on the adequacy decision, a safeguard applied to no other country, which reflects mistrust of the British government’s ability to protect EU citizens’ data.

Didier Reynders, the European commissioner in charge of data protection, said the adequacy decision could be withdrawn “immediately” if the commission had serious concerns.

“Of course we have a procedure and we will give the opportunity to the UK to react and to explain what are the possible solutions, if we have a problem,” he said. “But if there is a real urgency this can be done immediately. So it’s possible to stop the process or to suspend or amend if we have real concerns. It’s a unilateral decision of the commission to do that.”

John Foster, the director of policy at the Confederation of British Industry, said the breakthrough in the EU-UK adequacy decision would be welcomed by businesses across the country. “The free flow of data is the bedrock of modern economy and essential for firms across all sectors – from automotive to logistics – playing an important role in everyday trade of goods and services.”

The digital secretary of state, Oliver Dowden, said: “After more than a year of constructive talks, it is right the European Union has formally recognised the UK’s high data protection standards.”

During the Brexit transition period, the government largely copied key EU legislation into the UK statute book, notably the landmark General Data Protection Regulation (GDPR) and the Law Enforcement Directive, which governs data sharing in police and law enforcement.

Brexiters on the Tory backbenches are pressing Boris Johnson to ditch the “prescriptive and inflexible” GDPR. A taskforce set up by Downing Street to “seize new opportunities from Brexit” said GDPR should be replaced with UK laws on data protection. The EU’s GDPR “overwhelms people with consent requests and complexity they cannot understand while unnecessarily restricting the use of data for worthwhile purposes”, states the taskforce report drawn up by Iain Duncan Smith, Theresa Villiers and George Freeman.

The group said consumers needed stronger rights, while data should be “free[d] up” to allow the UK to capitalise on artificial intelligence and data-driven healthcare. The prime minister promised to give their report “the detailed consideration it deserves”.

During the Brexit negotiations, analysts at the New Economics Foundation warned that the absence of a deal on data could cost UK firms up to £1.6bn, either in compliance costs or higher prices for goods and services. Any company that shares data between the UK and EU – via payroll or health records – could be affected if Brussels decides to withdraw adequacy.

Only 12 countries, including Canada, Switzerland and New Zealand, have positive adequacy decisions from the EU. The US was deemed partially adequate, but these decisions have been thrown out twice by the European court of justice. The two legal victories for the privacy campaigner Max Schrems concluded the EU-US agreements on data-sharing failed to protect EU citizens from snooping by US intelligence agencies.
Newsletter

Related Articles

0:00
0:00
Close
Russell Brand Trial Begins at Southwark Crown Court
UK Parliament to Debate Climate Risks and Council Tax Following Public Petitions
Department for Transport Demands Safety Audits Following Regional Rail Disruptions
House of Lords Scrutinizes Amendments to Armed Forces Bill
Devolved Administrations in Scotland and Wales Criticize Post-Brexit Funding Framework
Prime Minister Andy Burnham Defends Middle East Military Support Under Parliamentary Scrutiny
NHS Leaders Warn of Severe Pressure on Hospitals from Winter Virus Outbreaks
Retailers and Business Groups Lobby Chancellor for Relief from Rising Employment Taxes
City of London Taskforce Urges Radical Reform to Prevent UK From Becoming "Incubator Nation"
Bank of England Officials Signal Potential November Interest Rate Hike
Institute for Fiscal Studies Warns of £35 Billion Funding Gap in Upcoming Autumn Budget
IMF Upgrades UK Growth Forecast to 1.3% for 2026
Former UUP leader Jeffrey Donaldson sentenced to 15 years in prison for historical child sex offences
UK ministers adopt independent commission blueprint to fast-track AI in the NHS
Labour leadership orders local councillors to end power-sharing deals with Green Party
UK government considers regulatory intervention in proposed Sky and ITV merger
Environment Agency declares severe drought across six English regions as reservoirs hit critical lows
NHS England issues new guidance prohibiting transgender women from female-only wards
Norwegian teenager sentenced to 20 years for part of Iran-backed assassination plot in Britain
UK government threatens complete visa ban on Eritrea over refusal to accept deportees
UK Treasury lobbies UBS to move global headquarters to London amid banking sector tax threats
MI5 Warns of Growing Russian Sabotage and Espionage Threats Across Britain
UK Prime Minister Andy Burnham Plans Brussels Talks to Renegotiate Post-Brexit Trade Deal
MI5 Warns of Rising Russian and Iranian Sabotage Threats to British Military Facilities
UK Prime Minister Andy Burnham Pledges Closer EU Ties as MI5 Reveals Russian Brexit Interference
UK Orders Security Review Following Reported Killing of Former Politician Ann Widdecombe
UK Prime Minister Andy Burnham Meets German Chancellor Merz to Strengthen European Security Ties
Nearly 100,000 NHS Patients Treated in Hospital Corridors as England Braces for Winter Pressures
UK Government Rejects US-Russia Diesel Agreement and Reaffirms Sanctions Against Moscow
UK and Germany Agree to Deepen Security and Economic Cooperation Following Berlin Talks
British Prime Minister Burnham Pledges Closer EU Ties During Visit to Germany
UK Announces New Sanctions on 17 Russia-Linked Entities During Foreign Secretary's Ukraine Visit
UK and Germany Finalize Kensington Treaty to Strengthen Defense and Technology Cooperation
Britain Maintains Diplomatic Mission in East Jerusalem Despite Israeli Closure Deadline
English Councils Push Government to Rethink Proposed Funding Cuts
Scottish Homebuilding Falls to Lowest Level in 11 Years
BBC Chief Matt Brittin Defends Restructuring as Staff Challenge Job Cuts
UK Finance Warns High Energy Costs and Bond Yields Are Complicating Fiscal Outlook
UK Adopts All 44 Recommendations on Regulating AI in Healthcare
Chancellor John Healey Prepares Autumn Budget as Borrowing Costs Strain Public Finances
UK Investigators See Strong Indications of Iranian Link After RAF Fairford Security Operation
Laura Trott Pledges Tighter Controls on Political Activism in UK Classrooms
Welsh Ministers Launch Long-Term Review of North Wales and Anglesey Crossings
Welsh Government Orders 18-Month Study of Road Solutions Around Newport
Reform UK MP Sarah Pochin Faces Scrutiny Over £800,000 Second Home Purchase
British Households Grow More Concerned About Fuel and Energy Prices
NHS Leaders Warn of Rising Winter Pressure on Emergency Departments
Kemi Badenoch Proposes £2.3 Billion Employer National Insurance Cut for Young Workers
Middle East Conflict Could Erase UK Fiscal Headroom, Economists Warn
Manchester City Found Guilty of Multiple Premier League Financial Rule Breaches
×