It’s been pretty difficult to avoid the never-ending talks surrounding Brexit. From hard borders to immigration – there’s been a lot of concerns raised over what the UK’s exit from the EU will mean for the economy.
One thing that experts are warning is the impending Tech-xit situation. So, what exactly is Tech-xit and can it be avoided?
What is Tech-xit?
Tech-xit is the term used to describe the negative impact Brexit will have on the technological sector. According to statistics, the tech sector accounts for 10% of the total employment and as technology continues to advance, it’s only going to become even more crucial to the country’s economy.
The trouble is, many tech start-ups and businesses within the UK are actually set up by entrepreneurs and companies abroad. A lot of European tech gurus have been drawn to the UK, particularly London, but depending upon how Brexit pans out, they could be tempted to go elsewhere.
How will the tech sector be impacted by Brexit?
One of the main concerns is that tech companies will be tempted to move their operations overseas into the single market. The weakened economy will also tempt UK tech companies to consider relocating. This would be a huge blow to the UK’s economy and for its innovation.
There’s also a worry that new tech start-ups will suffer from a lack of funding options, and that existing tech firms that are currently struggling will find it really tough to continue operating once the UK exit is confirmed.
Ways to avoid it
So, how can the UK avoid Tech-xit and ensure the tech industry still thrives despite the uncertainty? Well, a good start is to consult with immigration lawyers. Whether you’re a company employing immigrants, or you are an immigrant thinking of basing your operations in the UK, it’s a good idea to seek legal advice in advance.
There has been some hope provided to the sector in the form of tech visa changes. The government has invested in Tech City UK, with £21 million provided to aid UK tech innovation through until 2021. Tech City UK has also been given the power to provide up to 2000 endorsements, enabling rising stars and recognised tech leaders to access the Exceptional Talent fast-track visa.
So, the government is taking steps to avoid Tech-xit becoming a problem. However, there are still a lot of challenges tech companies will need to overcome. One issue which is likely to have an impact is the way the UK is perceived. Tech start-ups have plenty of choice of where they can be based, so given how negatively the UK government is coming across during Brexit negotiations, it could have a damaging impact on the country’s tech economy.