No-deal Brexit could cost the UK thousands of tech jobs

The UK could lose 92,000 tech jobs by 2030, if a no-deal Brexit were to happen, new research has claimed.

The dire pronouncement is according to a new report by Cambridge Econometrics, commissioned by London’s Mayor, Sadiq Khan, as it looks into the effect that such a decision would have on the capital.

That is the worst-case scenario and the tech industry would not be the one that gets hit the hardest, too. Within this scenario, by 2030, the UK could lose 482,000 jobs and have £46.8 billion less investments. The majority of those jobs, 119,000 of them, would belong to the financial and professional services sector, followed by science and technology with 92,000.

The prediction is based on the premise that the UK remains in the single market and in the customers union. In such a world, there would be 6.7m workers in science and technology by 2030.

A no-deal Brexit, no transition, no memberships in the single market of customs union and no preferential trade agreement, would leave the country with 6.5m workers.  

The tech industry’s biggest challenge, following such a scenario, would be to access funds. The UK usually gets plenty of funding from the EU, either through grants or international groups. EU programme’s total budget is roughly €80bn for the period up to 2020, and the UK takes roughly €1bn a year.

Besides money, the report argues that the UK might become a less attractive playground for both funding and collaborative work.

"It is likely that the impacts would be negative (compared to what may have happened if the UK remained in the Single Market and Customs Union)," the report said. "On the other hand, it is highly unlikely that entrepreneurial activities would halt following Brexit. New businesses are expected to continue opening in the UK and London, albeit at a slower rate than historically."

You can read the full report on this link.

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