Home News Industry opposition to no-deal Brexit hardens, says TechUK

Industry opposition to no-deal Brexit hardens, says TechUK

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More than two-thirds of TechUK members consider a no-deal Brexit on 31 October 2019 could have a unfavourable influence on their enterprise, with questions over abilities and recruitment, authorized compliance, and persevering with knowledge flows between Britain and Europe being among the largest worries.

Following a earlier research conducted at the end of 2018, TechUK turned once more to pollsters Ipsos Mori to quiz 841 members, of which 193 responded, with roughly 41% from companies with greater than 250 workers, 27% from medium-sized corporations, and 31% from small companies using fewer than 50 folks.

Since the earlier research, TechUK members have held agency of their views of the influence of a no-deal Brexit, with 71% agreeing it will harm their companies (up from 69% final time round), and whereas extra respondents had taken energetic steps to insulate themselves, this had not made them really feel any extra optimistic.

In phrases of preparedness, bigger companies tended to say they had been both pretty or nicely prepared for no-deal (87%), whereas smaller firms had been much less assured (47%). As of August 2019, over half of small companies had really mentioned that they had taken no energetic measures. Those who had not taken any measures tended to say this was as a result of it was inconceivable to predict the precise implications of no deal.

“In the nine months that have passed since we last surveyed our members, sentiment has not changed about the impact of no deal with the majority of respondents saying it would have a negative impact on their business,” mentioned TechUK CEO Julian David.

“Even for those members we spoke to who have taken steps to prepare for no deal, mainly larger members, it is clear that no deal remains an unattractive outcome.”

“A no-deal Brexit on 31 October will not bring an end to uncertainty for business. The UK will have to return to the negotiating table on 1 November to start talks on a free-trade agreement, with no withdrawal agreement to build on. This will only extend uncertainty and undermine confidence for UK tech businesses.”

The largest concern arising from no deal amongst respondents was the general unfavourable influence on the economic system and a slowdown in enterprise, cited by 44%.

An extra 12% had been most nervous concerning the influence of no-deal on their skill to recruit and retain talent from the EU, whereas 8% mentioned confusion and uncertainty over varied elements of regulatory compliance was their largest concern, and an extra 8% cited disruptions to the free flow of personal data between Britain and Europe.

TechUK’s findings mirror, to some extent, the findings of one other research released earlier this week by monetary expertise (fintech) commerce physique Innovate Finance.

Innovate reported that 78% of UK fintech corporations had been inadequately ready for no deal, falling to 45% if the UK strikes as a substitute right into a transition interval following a deal on the finish of October. Just over a 3rd mentioned that they had not taken any steps to put together in any respect.

Innovate’s respondents had been primarily involved with monetary passporting rights – the rules that let banking organisations to serve clients wherever within the EU, even when they’re positioned in non-Eurozone states – however like the broader tech sector, additionally mentioned points reminiscent of recruitment. Almost 20% mentioned they would consider moving to or basing some operations in a unique jurisdiction due to Brexit.

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