In my mind, any government who has even the intention of implementing such a Stalinist system is robbed of legitimacy and can not be allowed to stay on. Regardless of whether it works, if the will exists within the government to so blatantly violate the right to privacy among its citizen - I mean, it's like when somene tries to kill you. Just because they don't necessarily succeed doesn't mean you should keep on giving them the keys to your house. They obviously want to kill you, and if something stopped them this time, that's no guarantee for the future.
I'm interested to hear what the Limey public at large thinks of this. Almost every Net comment I've read has been thoroughly negative, yet somehow the idea lives on in what is supposedly a thouroughly democratic state.
The other question is, if the government of Britain rolls this out, and it goes through, how long before other places start doing it as well? If a democratically elected government can get away with it, every tyrant and strong-man in the world will take their cue and implement something similar at home. Doesn't the EU have a Human Rights Court that is supposed to deal with this sort of stuff, when the national government start acting nuts? I can't imagine how this could possibly stand up in court as regards a person's right to privacy.