The UK Government has triggered Article 50 and therefore has formally began its process of leaving the EU. Across the country there are mixed responses regarding the fallout of this political landmark event.
What is certain is that there will be other effects of some form for the UK tech industry, whether or not these will be positive or negative is yet to be determined. Here, we take a closer look at what just might happen to the UK tech industry as and when the UK leaves the European Union.
Industry Scepticism
Firstly, it’s interesting to note that politically, the industry in general was opposed to the decision. As this article in The Telegraph suggests, the UK tech industry was a ‘vocal advocate for Britain staying in the European Union’ due to its predominately ‘international focus’. As such, it’s fair to say that scepticism is abounding about the future within this niche.
That being said, the article has stressed that investment and expansion are currently ‘thriving’ in the wake of the decision to leave – possibly due to businesses making the most of the current EU trading policies.
Job Uncertainty
Uncertainty around employment could be something the staff of UK-based, but foreign-owned, tech companies may be facing. A lack of EU-regulations and preferable trade agreements may make it unaffordable for certain companies to remain operating on our shores. You only need to look at the recent takeover of Opel by Peugeot as an example of this and how there is now uncertainty surrounding the future of their UK manufacturing plants.
Wider Financial Effects
From a financial point of view, everyone from those with investments in tech businesses, to those working within the fintech that supports these investors, could see some domino effects. The latter may face the abovementioned job uncertainty, while the former may see fluctuations or volatility around their investments.
A silver lining for investors though is that they can still use established trading platforms from a provider like ETX Capital, to help manage their money effectively during this potentially difficult period.
A Potential Increase in UK Talent
On the flip side to all of this though, the fact remains that the UK will leave the EU and this will make it more difficult to secure foreign workers and to set up companies overseas. As such, we could then see more of a focus on increasing the abilities of UK talent to combat any drop in employment.
Final Thoughts…
As aforementioned, the reality is that no one really knows for sure what is going to happen – at the moment it is purely speculation.
With that in mind though, it would seem that a wise move for anyone involved in the UK tech industry, whether financially or through employment, is to keep up to date with any developments. This way, these people could potentially be able to pre-empt any major events or issues that arise when the UK is no longer a part of the EU.
