Insights

The Digital Information and Smart Data Bill: What we know so far

6/08/2024

With the Data Protection and Digital Information Bill ("the DPDI Bill") failing to make it through in the parliamentary 'wash up' before the UK general election in July, detail is awaited around the Labour government's plans for data use and protection.

The King's Speech and the background briefing notes released by Downing Street have provided some indication on this with the announcement of a new Digital Information and Smart Data Bill ("DISD Bill"). The intention behind the DISD Bill is said to be to "harness the power of data for economic growth, to support a modern digital government, and to improve people’s lives".

While detail is currently light, if passed the DISD Bill is likely to have an impact on the way businesses operate and interact with their customers, suppliers and partners, as well as on their legal obligations and liabilities regarding digital information and smart data. It appears that a key focus of the DISD Bill is around creating opportunities for growth and innovation. As more detail emerges, it is going to be crucial for businesses to keep up to speed with the proposals and the implications for their data activities and strategies.

Key features of the DISD Bill

A number of key plans for the DISD Bill have been confirmed at this stage, some but not all of which echo proposals in the DPDI Bill.

Data protection

The government has confirmed the DISD Bill will introduce targeted reforms to some data laws. The intention is said to be to maintain high standards of data protection and to increase clarity in this area in order to promote the safe development and deployment of new technologies. 

Strengthening the ICO

It is planned to give the ICO new, stronger powers. The organisation will be restructured to form what has been described as a "more modern regulatory structure" with a CEO, board and chair. There were also proposals to effect structural changes to the ICO under the DPDI Bill, some of which were controversial. This included the Secretary of State's potential involvement in appointing members of the board. It is yet to be seen how the Labour government will approach this and maintaining the independence of the ICO. 

Digital Verification Services

It is intended that DISD Bill will support the creation of secure digital identity products and services, supplied by certified providers. The aim is to simplify the identity checks involved in everyday activities like buying age restricted products and services, moving house and employment screening. It is hoped this will also facilitate online transactions. At first blush these proposals and those on smart data schemes (below), appear to draw on proposals contained in the DISD Bill. 

Smart Data Schemes

The government plans to create a legal framework for 'Smart Data'. This would enable customer data (whether a consumer or business customer) to be shared securely with authorised third-party providers ("ATPs") on the customer's request. The ATP could then, it is said, enhance the customer's data with broader contextual 'business' data which could improve decision making. The current briefing information does not provide more precise detail but cites Open Banking as an active example of a regime comparable to a 'Smart Data scheme'.

Scientific research

With a view to helping scientists make use of data for their research, it is proposed that "legitimate" scientific researchers will be able to ask for broad consent for data use for areas of scientific research. Similarly, there had been provisions in the DPDI Bill which sought to loosen restrictions on processing personal data for scientific research purposes.

National Underground Asset Register

A new digital map to be developed to assist with the installation and maintenance of pipes and cables underground. The aim is to give planners and excavators secure and instant access to the data needed. 

The devil lies in the detail 

The information released so far reveals aspects of data and digital information that the DISD Bill will focus on. It also highlights the aspirations that the government have for maximising economic growth and societal benefits through this proposed legislation. However, there is a lot that remains unknown. 

There are clearly overlaps in the areas of focus of the DPDI Bill and the proposed DISD Bill, but the approach taken to these issues could still vary considerably. The devil, as they say, lies in the detail. For example, concerns had been raised over the DPDI Bill in relation to data protection and the possibility that the proposed amendments to the existing UK GDPR and Data Protection Act 2018 might weaken the data protection rights of individuals. The Conservative led government's priority seemed to be to move away from the European legislative approach and to capitalise on so called post-Brexit freedoms to boost the UK economy. 

Conclusion

It is not yet known how distinct the drafting of the DISD Bill will be from that of the DPDI Bill. It remains to be seen, but it seems likely that the current government will seek to take a more measured approach to amendments to current data protection laws and allay fears around the protections for personal data.

In any event, the DISD Bill is likely to have implications for individuals and businesses alike. Businesses should keep up to speed with the proposals as further details and the draft DISD Bill emerge in order that they can be prepared and proactive in adapting to the new data regime.

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