Jonathan Purle

UK data regulation costs British tech businesses an estimated £5.3 billion a year in compliance alone. That’s from new research by Freshwater Strategy for CCIA, surveying 113 data-intensive tech businesses. Two-thirds (69%) say compliance costs have risen over the past 5-10 years, while none say they have fallen. But compliance is only one slice of the ultimate cost to the British economy: - Half (52%) reported not undertaking a business activity due to data regulation - Firms are scaling back analytics, delaying products and holding back AI features - Some are launching new products, including AI agents, offshore to avoid red tape ‘The issue is that business are very frightened of falling into the trap of breaching regulations, so they do not pursue a project because of the risk,’ explained one respondent. ‘Overzealous regulation means that taking that route is simply not worth the risk capital to get the feature up and running – better to place bets elsewhere,’ said another. 62% say uncertainty about enforcement matters more than the rules themselves, while 68% say the risk of getting it wrong is out of proportion to the actual risk to individuals. The ICO’s newly appointed independent board has an opportunity to shift culture, not just the letterhead.