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While the world is still reeling under the shock of Brexit finally taking place, bad news haven’t stopped pouring in one after the other. And it doesn’t end with slump in pounds, Britain’s trading woes and the wrecked stock market. Let us not forget that UK’s technology sector was not at all in favor of Brexit. Today, we will find out about the impact Brexit on UK technology sector. Here’s a more detailed look:
Brexit and UK Technology: Tracing the initial signs of “reluctance”
As per a survey, most of the tech firms in the UK were not in favor of leaving the Union. 87% of them expressed their willingness to stay in the Union whereas 70%of them feared that Brexit would seriously go on to hamper London’s image as a leading hub of technology.
Laws governing data exchange policies
Talking about hassles, let us start off with the immediate need for complete overhaul of the policies governing the flow of data between the U.S and the EU. Britain was one of the prominent members of the EU. Now, there is every possibility of both the US and Britain pressing for changes in the existing data policies. And, one can hardly imagine the fate of the sensitive data which has already been exchanged between the two countries. As of now, however, there will be no change in the aforesaid agreement despite the referendum.
The Information Commissioner’s Office of the UK has clarified its stance in this regard. It has maintained that the Data Protection Act will act as the law of the land in spite of how Britain has chosen to vote.
As EU standards are followed mostly around the world. So, Britain is most likely to retain them. And, experts have even gone to warn Britain of the dire consequences should it look to deviate from the same. There is every possibility of the country triggering the skepticism of the other forward thinking countries as a result.
What has driven major attention however, is the fact that the speculations regarding possible policy changes had also given rise to new campaigns. LastMinute.com co-founder Brent Hoberman went to a launch a campaign focused on a single startup market a week before the referendum. Notably, it aimed at helping new companies in the Europe get their legal framework right.
Will the sources of funding shrink?
One of the major reasons cited by the tech firms to stay in the EU was their fear regarding the possibilities of funding. Most of them opined that the London start ups would find it difficult to secure funding if Britain left the EU. Britain is known to draw a major chunk of finance from the European Investment Fund. With Britain moving out of the EU, there are serious fears regarding the drying up of these funds. However the European Investment Fund has assured that it will continue business with Britain as usual for the time being.