The intent is sound and should bring closer the use of citizen supplied data to make specific actions against government policy (policy data driven Actions),. the real challenge will be making this something that government departments and citizens will find appropriate. A further technical challenge lies in whether government legislation, regulations and policy can be specified clearly and conciseley for unambiguouse decisions to be made. One of this is a lot easier than the other!
According to the Telegraph, the Cabinet Office document notes: "People tend to assume that government can share data between departments to complete simple tasks, and are surprised to learn that it cannot. "Removing barriers to sharing or linking datasets can help government to design and implement evidence-based policy - for example to tackle social mobility, assist economic growth and prevent crime." The memorandum goes on to outline the options that would enable government authorities to access and merge entire datasets - such as education, employment and wealth data - in order to study social trends.
