Data protection watchdog, the Information Commissioner's Office has confirmed that it has served enforcement notices on both HM Revenue and Customs and the Ministry of Defence, following high profile data breaches at the organisations.

Both departments will now be compelled to provide progress reports detailing how they are improving data governance practices.

The announcement was made as the Information Commissioner, Richard Thomas, released his annual report.

Thomas used the launch to criticise government proposals to store details of citizens' phone and internet communications.

"There needs to be the fullest public debate about the justification for, and implications of, a specifically created database … holding details of everyone's telephone and internet communications," he said.

"Such a scheme would require the fullest public debate to establish whether, whatever the benefits, it amounted to excessive surveillance as a step too far for the British way of life."