London Daily

Focus on the big picture.
Sunday, Nov 01, 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
Home Office Expands Border Security Operations and Intelligence Sharing With European Partners
Office for National Statistics Reports Modest Retail Sales Growth Ahead of Crucial Christmas Trading Season
Welsh Government Unveils Strategic Plan to Boost Regional Technology Innovation and Digital Skills Training
Department for Environment Food and Rural Affairs Implements New Agricultural Subsidies Framework for English Farmers
Scottish First Minister John Swinney Announces Major Regional Infrastructure and Green Energy Investment Strategy
National Health Service Leaders Warn of Severe Winter Pressures and Mounting Accident and Emergency Backlogs
Bank of England Monetary Policy Committee Signals Cautious Interest Rate Path Amid Persistent Services Inflation
Chancellor of the Exchequer Rachel Reeves Finalizes Autumn Budget Framework Aiming to Close Public Sector Fiscal Gap
Department for Science, Innovation and Technology Prepares Enhanced Artificial Intelligence Safety and Cyber Defense Frameworks
United Kingdom Government Expands International Sanctions Framework Against Russian Shadow Fleet and Financial Enablers
Institute of Directors Reports Sharp Post-Budget Drop in Business Confidence Despite Long-Term Investment Intention Shifts
Chancellor John Healey Defends Sweeping Fiscal Adjustments and Household Support Packages Following Autumn Budget
Parliamentary Petitions Committee Schedules Major Legislative Debates on Special Educational Needs and Non-Stun Meat Labelling
Regional Devolution and Good Growth Fund Frameworks Reshape Local Government Funding Across English Regions
Loughborough University Economic Analysts Highlight Substantial Uncertainty Surrounding Public Sector Efficiency Savings
British Legal Sector Drives Sixty Billion Pounds in Annual Economic Output While Employing Over Half a Million Professionals
Law Society Welcomes New Better Regulation Executive While Pressing for Long-Term Legal Aid Funding Reform
Metropolitan Police and Security Services Heighten Operations Across London Ahead of Large-Scale Public Demonstrations
Bank of England Economists Scrutinize Corporate Tax Adjustments and Public Sector Borrowing Pressures
Chancellor John Healey Defends Autumn Budget Tax and Spending Allocations Following Intense Parliamentary Scrutiny
Department for Environment, Food and Rural Affairs Implements Strict Water Quality Monitoring Rules Following Severe Rainfall and Flooding
Welsh Government Unveils Comprehensive Regional Housing Strategy to Address Rural Affordability and Homelessness Pressures in Cardiff
Office for National Statistics Reports Slowing Consumer Price Inflation and Steady Retail Performance Across United Kingdom Markets
Northern Ireland First Minister Michelle O'Neill and Deputy First Minister Emma Little-Pengelly Advance Cross-Border Infrastructure Agreement in Belfast
Competition and Markets Authority Launches Formal Investigation Into Artificial Intelligence Partnerships Involving Major Technology Corporations
Scottish First Minister John Swinney Secures Cross-Party Support for Devolved Budget Framework and Renewable Energy Expansion
High Court Rules in Favor of Environmental Campaigners Over Department for Energy Security and Net Zero Licensing Procedures
National Health Service England Announces Major Digital Modernization and Artificial Intelligence Diagnostic Rollout Across Regional Trusts
Bank of England Monetary Policy Committee Signals Cautious Approach to Interest Rate Cuts Amid Persistent Wage Growth and Inflation Pressures
British Prime Minister Keir Starmer and Chancellor Rachel Reeves Outline Strategic Infrastructure Plans to Boost Regional Growth and Private Investment
Water pollution remains high despite £5bn investment
Regional Economic Divergence and Industrial Transformation
Technological Sovereignty and Regulatory Scrutiny
Fiscal Consolidation and Public Service Pressures
Automotive Industry Leadership Warns of Imminent Supply Chain Disruptions Following Recent European Trade Negotiations
High Court Delivers Landmark Ruling Affirming Strict Legal Protections for Corporate Data Privacy Against State Surveillance
Welsh First Minister Eluned Morgan Secures Additional Funding for Regional Transport Infrastructure and Rail Modernization
Scottish First Minister John Swinney Announces Major Green Energy Infrastructure Investment Package for Aberdeen
Department for Work and Pensions Proposes Sweeping Welfare Reforms to Incentivize Long-Term Unemployed Back into Work
Competition and Markets Authority Launches Formal Investigation into Artificial Intelligence Partnerships Involving Major Tech Giants
United Kingdom Foreign Secretary David Lammy Concludes High-Level Strategic Talks in Washington on Middle East Security
National Health Service England Unveils Emergency Winter Resilience Plan to Combat Projected Surge in Emergency Admissions
Bank of England Governor Andrew Bailey Signals Cautious Approach to Interest Rate Cuts Amid Persistent Inflation
British Chancellor Rachel Reeves Finalizes Corporate Tax Overhaul Ahead of Autumn Budget to Fund Public Services
Automotive Manufacturers Urge Government Action as High Energy Costs and Global Supply Chain Disruptions Threaten Production
Metropolitan Police Issue Formal Apology Following Inadvertent Release of Confidential Information During High-Profile Investigation
Scottish Finance Secretary Shona Robison Unveils Devolved Budget Highlighting Housing and Public Service Adjustments
Energy Regulator Office of Gas and Electricity Markets Prepares to Remove Household Gas Standing Charges Following Treasury Mandate
Treasury Confirms Reversal of Planned Cash Individual Savings Account Allowance Reduction Protecting Twenty Thousand Pound Limit
Office for Budget Responsibility Revisions Predict Moderate United Kingdom Economic Growth with Elevated Inflation Pressures
×