London Daily

Focus on the big picture.
Wednesday, Jan 07, 2026

You've heard of tax havens. After Brexit, the UK could become a 'data haven'

You've heard of tax havens. After Brexit, the UK could become a 'data haven'

If Britain were to host data acquired in unlawful ways, the financial and reputational damage would be huge, says Carissa Véliz, author of Privacy is Power
The United Kingdom is at a crossroads. On the verge of Brexit, it has to decide where it stands in relation to privacy: will it loosen data protection regulation, moving more towards China’s model, or will it guarantee its citizens’ right to privacy, moving more towards a Californian approach and securing a data adequacy agreement with the EU? It would be a mistake to choose the former.

Last month, the UK published its national data strategy. Oliver Dowden, the digital secretary, wrote that under the UK’s strategy, “Data and data use are seen as opportunities to be embraced, rather than threats against which to be guarded.” No one doubts there are welcome opportunities in data, but to overly focus on the potential benefits of data and neglect the threats that the collection and use of personal data entail would be unwise.

One might reasonably start to worry about the UK opting for too insecure an approach when the strategy refers to tackling barriers to data, which, it states, range from “legal barriers (real and perceived) through to cultural blockers and risk aversion”. The worry might magnify in light of No 10 chief adviser Dominic Cummings’ views on data. Not only did he support the vast collection of personal data for the purposes of the Vote Leave campaign; he has also described the EU’s general data protection regulation (GDPR) as “horrific” and “idiotic”.

Countries with poor data protection laws typically fall into two categories: underdeveloped or authoritarian. Given its hard-won reputation of being on the side of progress and anti-authoritarianism, it would be unfortunate if the UK was associated with either of those. But there is a third possibility when it comes to bad data practices that is just as unpalatable. The UK could develop into a data haven, in the way some countries are tax havens.

A data haven would be a country involved in “data washing”, being willing to host data acquired in unlawful ways (eg without proper consent or safeguards) that is then recycled into apparently respectable products. Data washing would be something a host country would do for those engaging in “ethics dumping”, a term used to describe the malpractice of exporting unethical research activities to countries with poor regulation.

Data hosted in data havens, in addition to being used for seemingly acceptable products, could also be used for illegitimate or questionable purposes (eg training spyware, such as facial recognition algorithms, which then gets sold to the highest bidder, including authoritarian regimes).

Data washing would involve the UK allowing companies and governments the world over to do their dirty data work under its protection in exchange for money. Allowing the UK to develop into a data haven could turn into a privacy catastrophe with huge financial and reputational damage to Britain.

The future is heading towards more privacy, not less. Europe and California are on the right side of history regarding this. The United States is discussing privacy bills and will likely soon develop more stringent federal privacy laws. After many years of unhinged optimism in Silicon Valley and the data economy, we are realising that trading in personal data is much more dangerous than we could ever have imagined.

Personal data is poisoning individuals, by exposing us to data harms such as public humiliation, identity theft and discrimination. It is also poisoning societies by undermining equality, autonomy and democracy.

We are not being treated as equal citizens when we are treated on the basis of what our personal data says about us. Privacy is what can blindfold the system to ensure we are treated impartially. Through personalised content and ads, and the trade in personal data, loose privacy laws are enabling algorithms to predict and influence our behaviour, and to make crucial decisions about our life with little if any oversight or accountability.

There are good reasons why we have spent centuries developing privacy norms and laws; these are not “unnecessary” barriers. The erosion of privacy in the past two decades has created profound asymmetries of power that are tugging at the seams of our societies.

If the UK doesn’t take privacy seriously, it will fall behind the rest of the developed world, much like it did with its first disastrous try at a contact-tracing app that was not protective enough of privacy. Contrary to what the national data strategy might seem to suggest, being pro-privacy is being pro-tech, because there is no future in tech that is privacy unsafe.

Technology that does not respect privacy will only lead to a loss of trust and collaboration on the part both of citizens and international partners. Furthermore, we don’t have to choose between privacy and cutting-edge tech. There are ways to develop AI and other tech that are privacy-friendly.

The national data strategy sets out to position the UK “as a global champion of data use”, as well as “the safest place in the world to go online”. For those two desirable objectives to be compatible, privacy must be protected.

Public data should indeed be shared more easily and widely – but not personal data. The UK has everything going for it to become a world leader in data ethics and ethical AI. Let’s hope it seizes the opportunity to walk towards that goal and not away from it. The UK government didn’t listen to privacy experts when they warned that the design of the first contact-tracing app was a bad idea. Will it take privacy seriously going forward?
Newsletter

Related Articles

0:00
0:00
Close
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
×