London Daily

Focus on the big picture.
Wednesday, Jul 30, 2025

No-deal Brexit data - should firms worry?

No-deal Brexit data - should firms worry?

In a no-deal Brexit, the UK will need to prove to the EU that its data protection is up to scratch.

"Take steps now to keep receiving data legally from the EU."

That's the message for businesses in a full page government advert in the Financial Times and elsewhere.

It goes on to warn that after 31 October "you may need to update your contracts."

But just how worried should companies big and small be about handling data in the event of a no deal Brexit?

The advert tells readers to follow the step-by-step guide at gov.uk/brexit.

But when you arrive there, finding your way to the advice about data is not straightforward.

I found that I had to pretend to be a business and answer a whole series of questions before I was presented with the information.

So here is the key issue. Right now data can flow freely across the EU as long as companies conform to its tough new General Data Protection Regulation (GDPR).

And as the GDPR is being incorporated wholesale into UK law, there should be no real change after Brexit - as long as we leave with a deal.

But if there is no deal, we will be treated as an external country, needing what is called an adequacy ruling showing our data protection standards are up to scratch - and the European Commission has indicated that this would not happen in a hurry.

So what do businesses need to do? Well, sending data to the EU will apparently be no problem because the UK government has decided it is happy with European standards.

But if you receive data - perhaps a lists of names and addresses of customers - from a company in the EU or the wider European Economic Area then you will need to take action.

The advice is that you should "review your contracts and, where absent, include Standard Contractual Clauses (SCC) or other Alternative Transfer Mechanisms (ATM) to ensure that you can continue to legally receive personal data from the EU/EEA."

Err - right. I can hear dozens of small business owners gulping at that.

But the gov.uk site then sends them over to the Information Commissioner's Office to find a handy interactive tool which will allow them to work out just how to craft one of these clever contracts.

Don't worry, the government site says, "for most organisations, especially SMEs, taking the required action isn't highly costly and doesn't always require specialist advice."

But don't think you can just ignore the problem."If you fail to act, your organisation may lose access to personal data it needs to operate."

Big companies are likely to have addressed this issue. One payments firm told me it had opened an office in Ireland, and was preparing to tell EU customers that their business would now be handled from there.


'Insurmountable bureaucracy'


But how prepared are small businesses?

Ben Thompson, co-owner of a cycle store in Fort William in Scotland, has visited the gov.uk/brexit site.

When he filled in the questionnaire he found he faced 21 Brexit-related issues, among them data transfers.

"We organise cycle tours, and may for instance be getting customer data from a German travel agency," he explains.

He now worries that he may need to sort out new contracts with all of his European customers. "My heart sank when I saw this - it's an insurmountable pile of bureaucracy for a small business."


Legal angle


It is all good business for lawyers. But Alex Brown, head of the technology practice at Simmons and Simmons, urges caution about just how serious the data transfer issue is: "If I was a business exporting this would be on my list to fix - but it wouldn't be near the top."

He doubts whether data regulators will be rushing to punish small businesses which fail to get the right contracts in place straight away.

But it is just one more worry for businesses grappling with Brexit uncertainty.

Make UK, the manufacturers' organisation, says the whole area is confusing for thousands of its members trading with the EU and is calling on the government to give clear guidance.

A DCMS spokesperson said it was in everyone's interests that the exchange of personal data between EU member states and the UK continued, and the government had set out ways in which businesses could comply with EU data protection laws.

Newsletter

Related Articles

0:00
0:00
Close
Former Judge Charged After Drunk Driving Crash Kills Comedian in Brazil
Jeff Bezos hasn’t paid a dollar in taxes for decades. He makes billions and pays $0 in taxes, LEGALLY
China Increases Use of Exit Bans Amid Rising U.S. Tensions
IMF Upgrades Global Growth Forecast as Weaker Dollar Supports Outlook
Procter & Gamble to Raise U.S. Prices to Offset One‑Billion‑Dollar Tariff Cost
House Republicans Move to Defund OECD Over Global Tax Dispute
Botswana Seeks Controlling Stake in De Beers as Anglo American Prepares Exit
Trump Administration Proposes Repeal of Obama‑Era Endangerment Finding, Dismantling Regulatory Basis for CO₂ Emissions Limits
France Opens Criminal Investigation into X Over Algorithm Manipulation Allegations
A family has been arrested in the UK for displaying the British flag
Mel Gibson refuses to work with Robert De Niro, saying, "Keep that woke clown away from me."
Trump Steamrolls EU in Landmark Trade Win: US–EU Trade Deal Imposes 15% Tariff on European Imports
ChatGPT CEO Sam Altman says people share personal info with ChatGPT but don’t know chats can be used as court evidence in legal cases.
The British propaganda channel BBC News lies again.
Deputy attorney general's second day of meeting with Ghislaine Maxwell has concluded
Controversial March in Switzerland Features Men Dressed in Nazi Uniforms
Politics is a good business: Barack Obama’s Reported Net Worth Growth, 1990–2025
Thai Civilian Death Toll Rises to 12 in Cambodian Cross-Border Attacks
TSUNAMI: Trump Just Crossed the Rubicon—And There’s No Turning Back
Over 120 Criminal Cases Dismissed in Boston Amid Public Defender Shortage
UN's Top Court Declares Environmental Protection a Legal Obligation Under International Law
"Crazy Thing": OpenAI's Sam Altman Warns Of AI Voice Fraud Crisis In Banking
The Podcaster Who Accidentally Revealed He Earns Over $10 Million a Year
Trump Announces $550 Billion Japanese Investment and New Trade Agreements with Indonesia and the Philippines
US Treasury Secretary Calls for Institutional Review of Federal Reserve Amid AI‑Driven Growth Expectations
UK Government Considers Dropping Demand for Apple Encryption Backdoor
Severe Flooding in South Korea Claims Lives Amid Ongoing Rescue Operations
Japanese Man Discovers Family Connection Through DNA Testing After Decades of Separation
Russia Signals Openness to Ukraine Peace Talks Amid Escalating Drone Warfare
Switzerland Implements Ban on Mammography Screening
Japanese Prime Minister Vows to Stay After Coalition Loses Upper House Majority
Pogacar Extends Dominance with Stage Fifteen Triumph at Tour de France
CEO Resigns Amid Controversy Over Relationship with HR Executive
Man Dies After Being Pulled Into MRI Machine Due to Metal Chain in New York Clinic
NVIDIA Achieves $4 Trillion Valuation Amid AI Demand
US Revokes Visas of Brazilian Corrupted Judges Amid Fake Bolsonaro Investigation
U.S. Congress Approves Rescissions Act Cutting Federal Funding for NPR and PBS
North Korea Restricts Foreign Tourist Access to New Seaside Resort
Brazil's Supreme Court Imposes Radical Restrictions on Former President Bolsonaro
Centrist Criticism of von der Leyen Resurfaces as she Survives EU Confidence Vote
Judge Criticizes DOJ Over Secrecy in Dropping Charges Against Gang Leader
Apple Closes $16.5 Billion Tax Dispute With Ireland
Von der Leyen Faces Setback Over €2 Trillion EU Budget Proposal
UK and Germany Collaborate on Global Military Equipment Sales
Trump Plans Over 10% Tariffs on African and Caribbean Nations
Flying Taxi CEO Reclaims Billionaire Status After Stock Surge
Epstein Files Deepen Republican Party Divide
Zuckerberg Faces $8 Billion Privacy Lawsuit From Meta Shareholders
FIFA Pressured to Rethink World Cup Calendar Due to Climate Change
SpaceX Nears $400 Billion Valuation With New Share Sale
×