Hacienda is the most extractive Tax Agency in the world. They have lobbied for ever more intrusion into private lifes of citizens in order to extract more money. Thus they have included a "lifestyle auditing" that has access to many cross-databases, utilities, insurance, etc....
If you set up a system of ID identification linked to your real ID and IP, Hacienda (and the police, and eventually private companies) will be able to backtrack.
The current PM's rother, wife and half of his cabinet are involved in corruption scandals linked to COVID funds given to companies that bribed people. This is the government that will implement such efforts. Would you be able to trust them ?
Because I really can't recall anything outrageous, and surely nothing on the level of surveilance existing in the UK.