Brexit and GDPR Compliance: The True Costs for Businesses
Dec 4, 2020 5:00:00 AM
As the end of the year approaches, UK business owners still await an adequacy decision from the EU. However, a favorable decision is by no means guaranteed or even likely, which is why companies need to start preparing for changes in how their staff transfers information between the EU and UK. We’ll look at a study completed by the New Economics Foundation (NEF) that analyzes the true costs of Brexit for businesses and what the government can do to assist in this matter.
Aggregate CostsWhen we look at the aggregate figures for UK firms, the NEF has predicted the cost of GDPR compliance will be somewhere between £1 billion and £1.6 billion. This is a conservative estimate, but it does cover both labor and the costs of goods and services. So this might include anything from purchasing new compliance software to hiring an independent auditor to ensure proper precautions are being taken. Broken down, the NEF believes it will cost micro-businesses £3,000, small businesses £10,000, medium businesses £19,555, and large businesses £162,790.
Economic ImplicationsWithout an adequacy decision, we’ll likely see:
- More compliance violations
- Businesses transferring outside of the UK
- Reduction in UK-EU trade
- Reduction in domestic and international investment