The risks to the UK tech sector from a disorderly ‘No Deal’ Brexit include a hit on funding for innovative startups and an inability to service IT contracts and build viable future ones, according to GlobalData.
The company’s latest report states that global tech titans with a European base should survive the turmoil, but smaller companies, many of whom operate in the blockchain/crypto space, lack the resources and bandwidth to cope with the expected fallout from ‘No Deal’, including diverging regulations, more red tape and talent acquisition challenges.
David Bicknell, Principal Analyst in the GlobalData Technology Thematic Research team, notes that the UK has typically been the default stop for US tech investment, but any Silicon Valley CEO looking at the UK’s likely post-Brexit hangover (and current political turmoil) will either put off a decision indefinitely or opt for an alternative base that is both tech-friendly and offers strong English-language skills.
“The government always talks a good game about winning the global race, in areas like AI, but the UK seems to be setting out to try and win the race with its legs tied together. Even Mo Farah would struggle with that. If the government expects the UK’s tech sector to continue to thrive, it has to create the conditions for it to do so, not destroy them,” he concludes.