A Tory policy group report published today recommends the repeal of bureaucracy surrounding the Data Protection Act to end the regulatory burden it imposes on businesses.

The British Chamber of Commerce’s Burdens Barometer estimates that the Act imposes a recurring annual cost of £2.3bn to UK plc - the third-highest impact of all the new regulations on business legislated in the last 10 years.

'Proper handling of the data given to public bodies and private sector companies would be governed by the general law of privacy, and by established codes of conduct,' says the report.

The review also expresses concerns that the Act restricts government departments from sharing 'innocuous' information, thus increasing administration costs.