A lot has been said about Brexit, and some were off and some were spot on, but the fact is that it had a massive impact on the British economy. Not just when it comes to trade but also when it comes to labor, especially in the tech industries. Whether it be digital platforms, software development, or Brexit, it has had an impact on the ability of London to keep the tech talent at home. But in a world where we are all connected through the internet, would it have been realistic to keep British talent at home if there was no Brexit? We’ll try to answer that question by taking a closer look at the tech industries on a global scale.

The repercussions of Brexit

Besides the obvious repercussions of Brexit, there have also been more specific repercussions in many different industries, including the tech industry. The end of free movement is one of the most critical. Hiring talent from countries in the EU has become problematic and now requires sponsor visas that both cost the companies money and time. That has created a need for more national talent, but since the countries in the EU, in many cases, allow easy access for UK citizens, it has created a competition that is hard for the UK.

The loss of EU funding

With Brexit, the UK-based tech companies also lost access to EU funding programs, though some access has later been negotiated. This has created a higher need for investors and other types of funding to ensure that the UK is capable of competing in the global tech market. Even though European VCs and investors became more wary of investing in the London-based companies, London is still able to attract significant funding from investors.

Restricted market access

Selling both physical products to customers in Europe naturally became more complex with UK tech companies losing “passporting” rights to operate freely in the EU. Selling digital services is not impacted the same way but the market for these specific services has still taken a hit. Overall the restrictions in market access hit hard in the beginning but has since shown signs of levelling out as a result of negotiations between the UK and the EU.

The future of tech in the UK

The repercussions of Brexit hit hard in the beginning, but the following governments have been working hard to make things better, not just for the tech industry but for companies in general. This has played a key role in the British tech industry being able to stay relevant on a global scale, and capable of maintaining its talent, but also attracting talent from across the globe. When all comes to all, the repercussions of Brexit have been on a scale that the industry could handle. Brexit just added a load of expensive paperwork to what used to be straightforward. The future of the UK tech industry is therefore still bright and promising, which is proven by the $11.3 billion the industry managed to raise in 2024.

 

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