If a facial recognition system is only linked to a database of wanted people then it won't be able to ID people not on that database. I.e. if it is no worse than a normal CCTV for everyone who is not wanted by the police.
Therefore, in principle there is no negative impacts in terms of privacy or liberty compared to existing CCTVs.
The only issue is technical: False positives (which I'm not sure the numbers would be 'enormous' at the moment). This is bound to improve over time and can be mitigated with the appropriate police procedures on how to respond to an alert by such a system.
> for a supposedly free society (of which the United Kingdom no longer is one)
Of course if that's your opinion we're not going to be able to have a discussion on the topic...