The Information Commissioner's responsibilities look set to expand dramatically as a result of EU Data Protection laws and the possible implementation of recommendations about his role made in the Leveson Report. This could result in a funding shortfall of £42.8 million that may have to be paid for by the taxpayer. The removal of the notification fee payable to him by data controllers and other funding cuts could compromise his work unless Government finds a solution. The Information Commissioner has handled more casework and significantly cutting the backlog of freedom of information appeals at the same time as reducing his budget. The funding for freedom of information work was cut by 23% from £5.5 million in 2011-12 to £4.25 million in 2012-13. This report reiterates the Committee's recommendation that the penalties for data protection offences must be increased to provide a more effective deterrent and asks why the Government has not adopted recommendations that custodial sentences should be made available for breaches of section 55 of the Data Protection Act. There are also concerns that a significant number of public sector bodies that handle sensitive private data have refused free audits from the Information Commissioner that could identify security problems in the way they are handling data. The MPs call for compulsory audits to be extended to NHS Trusts and local councils. The Committee also reiterates its view that the Information Commissioner should be granted greater independence from the executive by being made directly responsible to, and funded by, Parliament