The Data Protection and Digital Information Bill was first introduced last summer but the government said it was paused in September 2022 so ministers could engage in a co-design process with business leaders and data experts.

It said this would ensure that the new regime built on the UK’s high standards for data protection and privacy, and that it seeks to ensure data adequacy while moving away from the ‘one-size-fits-all’ approach of the EU’s GDPR.

The government stated: “The improved bill will introduce a simple, clear and business-friendly framework that will not be difficult or costly to implement – taking the best elements of GDPR and providing businesses with more flexibility about how they comply with the new data laws.”

It said the bill will ensure the new regime maintains data adequacy with the EU, and wider international confidence in the UK’s comprehensive data protection standards; and further reduce the amount of paperwork organisations need to complete to demonstrate compliance.

It will also; support more international trade without creating extra costs for businesses if they’re already compliant with current data regulation; provide organisations with greater confidence about when they can process personal data without consent; and increase public and business confidence in AI technologies by clarifying the circumstances when robust safeguards apply to automated decision-making.

The government said the reforms would unlock £4.7bn in savings for the UK economy over the next 10 years and maintain the country’s data protection standards so businesses can continue to trade freely with global partners, including the EU.

Donelan said: “Co-designed with business from the start, this new bill ensures that a vitally important data protection regime is tailored to the UK’s own needs and our customs.

“Our system will be easier to understand, easier to comply with, and take advantage of the many opportunities of post-Brexit Britain. No longer will our businesses and citizens have to tangle themselves around the barrier-based European GDPR.

“Our new laws release British businesses from unnecessary red tape to unlock new discoveries, drive forward next generation technologies, create jobs and boost our economy.”

Alongside these new changes, the bill will increase fines for nuisance calls and texts to be either up to 4% of global turnover or £17.5m, whichever is greater, and aims to reduce the number of consent pop-ups people see online, which allow websites to collect data about an individual’s visit.

The bill will also establish a framework for the use of trusted and secure digital verification services, which allow people to prove their identity digitally if they choose to do so.

The measures will allow customers to create certified digital identities that make it easier and quicker for people to prove things about themselves, the government added.

The bill will strengthen the Information Commissioner’s Office (ICO) through the creation of a statutory board with a chair and chief executive.

Data-driven trade generated 85% of the UK’s total service exports and contributed an estimated £259bn for the economy in 2021, the government said.

The Data & Marketing Association (DMA UK) has welcomed the new bill. During the most recent phase of consultation, DMA CEO Chris Combemale chaired the Business Advisory Group which provided valuable input to the Secretary of State and Department for Science, Innovation and Technology (DSIT) officials.

He said: “The DMA has collaborated with the government throughout the Data Protection and Digital Information Bill (DPDI)’s development to champion the best interests of both businesses and their customers. We are confident that the bill should act as a catalyst for innovation and growth, while maintaining robust privacy protections across the UK – an essential balance which will build consumer trust in the digital economy.”

The DMA said the greater clarity offered on what constitutes a legitimate interest was one of the most significant reforms, and would encourage more businesses to use it as a lawful basis for data processing where appropriate.

“Attracting and retaining customers and donors is a fundamental legitimate interest of businesses and charities, so we are delighted the government has acknowledged this in the reforms to help drive innovation and growth,” said Combemale.

“The DMA was well placed to advise on these developments over the past two years through our strong relations with UK businesses and government. It was important to our community that we focused reforms on the needs of both businesses and their customers to ensure the right balance was achieved for all.”

Konrad Shek, director of policy research at the Advertising Association, also commented: “The Advertising Association broadly welcomes the introduction of the new version of the DPDI bill and what has been achieved to date, with the added clarity to the use of legitimate interest, especially with regard to direct marketing; the inclusion of commercial research under research provisions; and reduction of overall paper requirements.

“We hope there will be further opportunities to amend the bill particularly in areas linked to non-intrusive cookies, such as increased clarity and flexibility over audience measurement and for ad performance.

“We look forward to continue working with government as a member of the Business Advisory Group on how this bill can most effectively support the work of our industry, both in the UK and as a global hub for digital advertising and marketing services.”