Introduction of the digital ID card "feels like a further erosion of our civil liberties"

FINANCIAL experts and business owners have criticised plans for a compulsory UK-wide digital ID scheme as a “further erosion of our civil liberties”.

Prime Minister Sir Keir Starmer is expected to announce it in a speech later today.

It is designed to help crack down on illegal working and modernise the state.

The scheme will be subject to a consultation, which will also look at how to make it work for those without a smartphone or passport.

Some financial experts and business owners hit out at the idea as “dangerous”, while others say the cards could be positive and help reduce fraud.

Patricia McGirr, Founder at Burnley-based Repossession Rescue Network, slammed the government's move.

She said: "Along with the recent death of free speech, this feels like a further erosion of our civil liberties. In planning, implementation and management of this behemoth, what will be the cost to the taxpayer when our citizens, pensioners and businesses are already squeezed dry? 

"Talking about potential efficiency gains against a backdrop of economic failure is clutching at straws for a positive spin on this. Oh and what cronies will get the contract to roll it out? This is a step too far. Right out of Orwellian fiction. 

“Another project in misdirection to take our attention off systemic failure and pandering politicians. All made to look like progress in the name of security and efficiency.”

Stephen Perkins, Managing Director at Norwich-based Yellow Brick Mortgages, said the cards would just be ignored.

He continued: "You already need a National Insurance number to work in the UK legally, and there are share codes for employers to check immigration status and right to work. 

“This is another ID card that reduces the freedoms of the many. It will continue to be ignored by those offering illegal employment and will do nothing to slow illegal immigration. Instead, the government should go after those who are providing these jobs.”

Kate Allen, Owner at Kingsbridge-based Finest Stays, said it was “dangerous”.

She added: "What looks like a pragmatic solution on the surface is in reality a dangerous step towards state overreach. As Rachel Reeves rallies HMRC to recoup billions in tax evasion, surveillance is set to soar. 

“With AI-powered Connect already conducting bank trawling, sales scanning, social snooping and global spying, digital ID cards would only supercharge that system, handing the taxman an even bigger window into our wallets.”

Adam Stiles, Managing Director at London-based Helix Financial Partners, called it a “gimmick”.

He said: "Labour are scratching around for more headline-grabbing nonsense. This is more Nanny State and Big Brother reaching in to strangle our liberties, possibly so that Rachel Reeves can at some point tax the cash we find in the sofa.

"This gimmick - and it absolutely is a gimmick - has been floated for years between different governments. If this is more about immigration then perhaps spend the money implementing what will no doubt cost spiral into the billions we don't have on something more meaningful. 

“Take your pick - lowering taxes, education, health, the list goes on. How about some investment for growth for once in this government?”

Michelle Lawson, Director at Fareham-based Lawson Financial, was scathing in her opinion on the cards.

She said: “Digital ID cards are another nail driven into the coffin of Starmer and Labour as a whole. This is a smoke and mirrors solution to a problem that doesn’t really exist. When there is already government-issued ID, I am unable to see few other merits other than stopping fake ID.”

Rohit Kohli, Director at Romsey-based The Mortgage Stop, called the announcement a waste of time.

He said: "The idea of digital ID cards feels like a distraction and a waste of public money. We already have systems in place that can confirm identity securely, and the real issue is proper enforcement, not building another expensive layer of bureaucracy. 

"Projects like this risk becoming white elephants, launched with great fanfare but offering little real benefit. Instead of ploughing funds into new tech schemes, the government would do better to focus on improving and properly using what’s already there."

Katy Eatenton, Mortgage & Protection Specialist at St Albans-based Lifetime Wealth Management, said we already have a similar system.

She continued: "Have the solution? Then create the problem. The government has made us think we need these cards to tackle immigration, yet we already have the e-visa system to prove work/live permissions for foreign nationals. Why do we need to prove the same?"

Samuel Mather-Holgate, Independent Financial Adviser at Swindon-based Mather and Murray Financial, disagreed, saying the move is positive.

He added: "Digital ID cards should have been introduced by Blair in the 90s. We are well behind where we should be in public sector efficiency directly down to this shortcoming. 

“ID cards will fix numerous problems in the sector, and bring efficiency to the public too. This is a win-win for everyone.”

Justin Moy, Managing Director at Chelmsford-based EHF Mortgages, also said it could reduce fraud.

He continued: "If delivered property, this could be a significant way to reduce fraud, and in particular within financial services, making it much easier to identify and stop the billions lost in banking and mortgage fraud every year. 

"No need for certified or photos of passports and driving licences that are open to manipulation."

Kundan Bhaduri, Entrepreneur and Landlord at London-based The Kushman Group, also said the cards have the potential to be “transformative”.

He said: “A secure digital ID could eliminate the absurd situation where proving you are British requires producing more documentation than most countries demand for citizenship applications. The efficiency gains could be transformative for business operations, too. 

"Tenant referencing currently takes days of document shuffling and third party verification, while mortgage applications require forests of paperwork that could be replaced by instant digital authentication. However, the implementation must prioritise user control and data security over government surveillance capabilities.

"The card should simply verify identity without creating comprehensive tracking systems that monitor every transaction and movement.The real test will be whether digital ID reduces administrative burden or simply creates new layers of technological complexity.”