Reform UK has announced plans to scrap the UK's General Data Protection Regulation (UK GDPR) and replace it with a 'light-touch' alternative modeled on New Zealand's Privacy Act, as part of a broader set of pro-business pledges aimed at supporting the country's 6 million small businesses. The proposal, unveiled Tuesday by leader Nigel Farage and economy chief Robert Jenrick, has drawn sharp criticism from Labour and political opponents, who label it 'unworkable and unserious.'
The proposed overhaul would eliminate the current UK GDPR regime, which was introduced in 2021 after Brexit to replace the Data Protection Act 2018, and which grants the Information Commissioner the power to levy multi-million-pound fines. Reform UK argues that these regulations are "strangling" small businesses and tech firms, and advocates for a system similar to New Zealand's Privacy Act 2020, where penalties are capped at NZ$50,000 (approximately £24,000). The party claims this would reduce red tape and foster a more prosperous business environment.
"Small businesses are the beating heart of our economy, yet they have been suffocated by years of punishing taxes, suffocating EU red tape and a big-state obsession that rewards dependency over hard work," Farage said in a statement. Jenrick added, "Ten years after the Brexit referendum, we should not still be following ridiculous EU privacy laws that hurt British businesses."
The pledge is part of a wider package of economic measures, including reversing the 2024 National Insurance increase, scrapping income tax on overtime pay, raising the VAT registration threshold from £90,000 to £150,000, and abolishing the 2035 Zero Emission Vehicle mandate. Reform UK also promised to make the Seed Enterprise Investment Scheme more attractive for family investors.
However, the announcement comes amid a data protection legal battle of its own. The Good Law Project sued Reform UK in March 2025, alleging the party failed to disclose personal data it holds and did not respond to deletion requests. A High Court judge allowed the case to proceed to trial in June 2025. Reform UK did not respond to requests for comment on its data plans.
Labour responded swiftly. A party spokesperson described the pledges as "unworkable and unserious," accusing Farage of using the announcement to distract from a £5 million gift from an overseas crypto-billionaire. Shadow chancellor Sir Mel Stride warned the plans would cost billions and lacked detail, saying they "collapse on contact with reality."
Critics also point out that the New Zealand model, while less punitive, still imposes restrictions on data handling and transfer, and may not provide the regulatory relief Reform UK envisions. GDPR was originally introduced to strengthen individual privacy protections in the wake of scandals like Cambridge Analytica and the rise of social media.
Analysis
Why This Matters
- The UK's data protection framework affects every business and individual in the country. Scrapping UK GDPR could reduce compliance costs for small firms but may weaken consumer privacy protections, potentially exposing citizens to data misuse.
- This policy pits economic deregulation against individual privacy rights, reigniting a debate that has simmered since Brexit. The outcome could influence how other nations balance digital economy growth with data security.
- If Reform UK gains traction, the proposal could pressure the current government to reevaluate its own data policies, especially given the upcoming general election context.
Background
The UK GDPR was adopted in 2021 following Brexit, replacing the EU's GDPR while maintaining similar standards. It gave the Information Commissioner's Office (ICO) powers to fine companies up to £17.5 million or 4% of global turnover for violations, a sharp increase from the previous £500,000 cap. The law was designed to protect individuals' data rights in an era of mass data collection, cloud computing, and social media, and was influenced by scandals like Cambridge Analytica. New Zealand's Privacy Act 2020, by contrast, caps fines at NZ$50,000 and relies more on compliance notices and enforceable agreements.
Reform UK's pledge is part of a broader deregulatory push. The party has previously called for cutting EU-derived rules and reducing the tax burden. This latest announcement follows a High Court decision allowing a lawsuit against Reform UK over its own data handling practices, adding a layer of irony to its criticism of data regulations.
Key Perspectives
[Small business owners]: Many express frustration with the administrative burden of GDPR compliance, including mandatory data audits, consent forms, and breach notifications. They see lighter regulation as a way to reduce costs and focus on growth, particularly for micro-businesses with limited legal resources.
[Privacy advocates and consumer groups]: They warn that weaker protections could lead to increased data breaches, unauthorized data sales, and erosion of trust. New Zealand's model, while less punitive, still requires compliance, but the lower fines may not deter large-scale abuses. The Cambridge Analytica scandal demonstrated the harms of lax data rules.
[Critics and political opponents]: Labour and shadow chancellor Sir Mel Stride question the plan's feasibility and cost. They argue it lacks detail, could undermine the Online Safety Act, and represents a distraction from Reform UK's own data scandals. The proposal is described as unrealistic, with unspecified costs for implementation and potential legal challenges.
What to Watch
- The outcome of the Good Law Project lawsuit against Reform UK, which could set a precedent for how the party handles data rights even under existing rules.
- Any costing analysis from the Office for Budget Responsibility or independent think tanks on the fiscal impact of the full package of pledges, including GDP change.
- The political reaction from the Conservative Party and Liberal Democrats, as data protection is a cross-party issue with implications for UK-EU data adequacy agreements, which could be threatened by a weaker regime.
- Potential triggers for escalation: if Reform UK enters government or influences policy, the ICO's role and funding could be at risk, sparking legal challenges from civil liberties groups.