How our approach to regulation is supporting economic growth

At a roundtable I attended this morning with the Chancellor of the Exchequer, she set out a package of measures to drive growth and innovation, these including a series of commitments from regulators designed to facilitate this. 

Data and people’s personal information runs through every facet of the economy, across all sectors – from banking and technology, through hospitality and retail, to healthcare and transport. There is a responsibility on all regulators to create an environment where businesses can flourish, and there is a particular onus on the ICO as a whole economy regulator to make sure companies can use data responsibly.

Our desire to promote innovation does not come at the cost of our duty to protect the public – in fact, they go hand in hand. Good regulation creates an environment where customers and businesses have trust that data will be looked after properly. This encourages the flow of data through the economy which is absolutely essential for growth.

While our primary duty as a regulator is to protect personal data, we also have choices on how we regulate and enforce the law, and we’ve given a lot of thought to those choices. We could regulate in a way that makes businesses fearful and risk averse; however, we have chosen to take a regulatory approach that reduces friction and encourages businesses to invest and innovate.

This approach has yielded positive measurable results, but we want to go further and that’s why we’ve set out our own ambitious set of commitments to help foster growth.

What we’ve done so far 

Growth is a strategic priority for the ICO, and over a five year period we estimate that our activities have enabled up to £140 million of value for UK businesses.

We have a statutory duty to consider the economic impact of our regulatory action on businesses, but we’ve also introduced a number of initiatives to support them to innovate responsibly. 

We’ve helped tens of thousands of businesses, both big and small, to improve their practices through clear advice and guidance, meaning they can invest and innovate with confidence. Our efforts focus on those at the cutting edge of innovation or legitimately without in-house support, such as SMEs. We ensure that we are closely aligned with other regulators to provide joined-up advice that streamlines compliance.  

And we’ve moved quickly, ensuring that businesses have the information they need before they need it, reducing the regulatory burden and “red tape” often associated with compliance. You only have to look at our generative AI consultation series or recent Tech Horizons report to see our focus on emerging areas of concern for businesses.  

What more can we do  

However, we recognise that now is the time to be more ambitious. That’s why we responded to the government’s call in January with a bold set of commitments to encourage businesses to invest, innovate and grow through data.  

Our proposals build on our strong track record, aiming to encourage investment and increased confidence from businesses in unlocking the potential of personal information. They also see us continue to work closely with our regulatory counterparts, including those in the Digital Regulation Cooperation Forum (DRCF). 

For example, we know that many SMEs are nervous of falling foul of the law. We will scale data essentials training specifically for small businesses to reduce compliance costs, increase customer trust and build their confidence to leverage the power of personal data. Over three years, we will deliver, at bare minimum, at least £9.1m savings to these businesses.  

A new experimentation regime will, if backed by government through new legislation, explore and test data-driven innovations, making the UK a destination of choice for developers. We will expand our current innovation services offering, which includes a regulatory sandbox and a free advice service. Findings will inform future regulatory reforms, ensuring that data protection law keeps pace with technology.  

We will provide greater regulatory certainty by producing a statutory code of practice for those developing or using AI products. By establishing a clear set of rules, we hope to strengthen the UK’s position as a global AI leader. 

Additionally, we have also committed to unlocking further potential in online advertising and making it easier for businesses to both transfer data internationally and engage with multiple regulators to ensure compliance. 

The provisions in the incoming DUA Bill will enable us to remain an agile and independent regulator while strengthening our responsibilities and duties around growth, innovation and competition. 

We look forward to delivering on our commitments, which we hope will positively contribute to economic growth. Over the coming months, we will communicate exactly how we plan to deliver these commitments in a way that makes a tangible difference to businesses, innovators and the public.