The European Union is ready to approve the free flow of data to and from the United Kingdom, it has been reported.

The decision would recognise that the UK has continued to ensure a sufficient level of protection of personal information post-Brexit to meet the standards of the General Data Protection Regulation (GDPR). It will make it easier for UK businesses to hold data on customers in the EU, and vice versa, including personal information such as bank details.

It had been feared that it might take a year or more for the necessary clearance to come from the European Commission, but the Financial Times has reported that a draft decision it has seen will be approved this week.