Brexit shakes UK's tech growth confidence

Brexit has made UK tech companies doubt the country’s tech sector growth for the next two years, according to a new survey by techUK. Back in March 2016, before the Brexit poll, 93 per cent of UK’s tech companies were positive about the tech sector’s growth potential. Now, it stands at 70 per cent.

Just 22 per cent of companies are positive about the impact of the vote to leave the European Union on non-EU exporting over the next two years and respondents believe the outcome will have negative impacts on foreign direct investment (49 per cent), capital investment (48 per cent), and R&D spend in the UK (48 per cent).

TechUK has announced that, for that reason, it formed a Brexit unit focused on ‘mitigating the impact on the tech industry’. It wants to see digital economy at the very centre of the UK Industrial Strategy and believes the UK should negotiate a new relationship with the EU.

“UK tech is resilient and innovative but this substantial drop in confidence clearly demonstrates the need to be vigilant to immediate and pressing concerns faced by tech companies," Julian David, CEO of techUK. "To maintain the sector’s exceptional growth rate they need to be confident that they will have access to the digital single market, a talented workforce and that international data flows will be protected.

“Our members are also very clear that there is also an opportunity for the UK. Now is the time to develop a world-leading digital infrastructure, and make the UK the place to invest and grow. Government must power this digital revolution, and the Industrial Strategy is a great starting point.

"Government needs to lead by example and take the opportunity to focus not just on protecting traditional industries, but on growing these industries through digitisation and supporting new industries that will drive the future economy.”

TechUK’s five-point plan for UK’s growth can be found on this link.