What are the crisis points?
London’s technology sector has been one of the jewels in the crown of the UK economy but Brexit is hanging heavy over its prospects. Access to talent and investment, including the EU’s Horizon 2020 funding, are key, as are data transfers and access to the single market for fintech companies.
What’s the worst case scenario?
Funding has already fallen since Article 50 was triggered and, as the tech sector is a supplier to almost every area of the economy, any shock from a no-deal Brexit could hit the industry hard. It could mean start-ups increasingly pick rivals Paris, Berlin and Lisbon to set up in. The staff exodus could also step up — some 8% of tech workers are from the EU and some have begun emigrating from the UK.
What are the contingency plans?
The Information Commissioner’s Office has urged firms to get on the front foot and review how they handle personal data. There are also plans to train up British workers for skilled tech jobs faster.
Are there any opportunities?
There’s no obvious direct benefit from Brexit but some believe Britain’s growth in areas like AI and cloud computing will not be hit.
