The new UK government used the recent King’s Speech upon the opening of Parliament to announce a proposal for a Digital Information and Smart Data Bill (the Bill). 

The proposed Bill builds on the legacy of the Data Protection and Digital Innovation Bill (DPDI Bill”) that was discussed extensively in the previous Parliamentary session by intending to lay a baseline for a new era of data governance within the UK. The previous Bill failed to become law due to the dissolution of Parliament before the July 2024 UK general election.

Background

The DPDI intended to update the UK’s data protection framework, including establishing a statutory regime for Smart Data and Digital ID (being digital identity verification frameworks). It received wide-ranging legislative scrutiny and was anticipated to become law. 

Accordingly, the proposed Bill will amend and update the UK’s data protection regime, although many of the concepts that the Bill is likely to cover are taken directly from the defunct DPDI Bill. 

The key aspects that are to be covered in the Bill are set out below. 

Digital verification services

As originally proposed in the DPDI Bill, the Bill will seek to establish digital verification services in the UK, empowering individuals and businesses to embrace secure digital identities. This is intended to create added convenience in everyday life such as assisting with age verification checks, pre-employment checks and moving house, and have broad applicability across a range of sectors. Digital identities are expected to foster economic growth through adding efficiency to common time-consuming processes. 

National Underground Asset Register (NUAR)

The Bill also introduces the NUAR; a digital map intended to revolutionize infrastructure management by providing planners, operators and engineers with instant access to data on the pipes, cables and other network assets functioning underground. This is intended to enable efficient maintenance, repair and operation of such items.  

Smart data schemes

Smart data schemes will be introduced through the Bill, which enable the secure sharing of customer data through authorized third party providers. This puts forward a wide potential of opportunities, such as seamless financial management across a range of customer accounts. 

Revising the Digital Economy Act 

The Bill will strengthen public services through revisions to the Digital Economy Act 2017, permitting the Government to share data about businesses that use public services. One of the ultimate intentions here is to eventually move to an electronic system for birth and death registrations, thus streamlining and developing efficiencies in this area. 

Strengthening the ICO

Under the Bill, the ICO (the UK’s data protection regulator) will receive enhanced regulatory powers, which will come alongside the clarification of data laws that are currently obstructing the safe development and deployment of new technologies. 

Who will the Bill affect?

The key businesses affected by the Bill will be those operating in the digital verification and identity sector, or users of these services (for example organizations in the financial services sector). The developments put forward by the Bill will act as a core foundation for establishing and regulating digital identity verification technologies within the UK.

The smart data schemes proposed by the Bill will act as a legal backbone for data portability programs, and will particularly be useful for those working in open banking through the enhancement of customer data with contextual “business” data, thus improving decision making in the open banking landscape. 

Key implications

If enacted in line with the Government’s announced intentions, the Bill will be a pivotal move for UK data protection, particularly in respect of its reforms around digital verification services. The King’s Speech indicated that the government estimates these reforms to produce £600m ($775m) in economic benefit annually. 

The Bill is intended to nurture and develop the implementation of digital technologies within the UK, thus boosting the UK’s reputation as a global leader in respect of technological development and related legislative provisions. Further developments and insights on the Bill will be revealed in the coming months and potentially-affected businesses should be alive to this evolution.

David Varney is a partner in the technology team and advises on a range of data protection, technology, intellectual property and commercial matters for clients in a number of sectors, including technology, financial services, media, retail and energy, at Burges Salmon.