Now that the UK has officially left the EU, there are still a lot of talks and trade deals to strike up. The way in which Brexit is going to affect UK businesses is yet to be fully revealed. However, recent updates regarding UK immigration has shed some light on what can be expected for foreign workers.
So, how will the latest Brexit updates impact the tech sector? Here, we’ll look at what we currently know.
Will the new immigration laws impact the sector?
One of the newest post-Brexit updates is that immigration will be limited within the UK. All low-skilled workers will no longer be accepted to work in the UK. There will also be a minimum limit of how much immigrants can earn, set to £25,000. So, if a worker coming from the EU for example, would earn less than £25,000, they will no longer be permitted to live and work within the UK.
While this is set to largely impact sectors such as healthcare and food packaging, smaller tech companies may see negative benefits from the new rules. However, generally speaking, the tech sector tends to attract higher paid workers, so larger companies would still be able to attract the talent they need.
If you tech company is worried about how the new laws will impact talent acquisition, it can seek advice from UK immigration lawyers.
How will it impact innovation?
One thing the tech sector relies heavily upon is innovation. It is estimated that approximately 75% of the cross-data flow from the UK occurs within EU countries. The House of Lords is therefore concerned that the UK will be at a major competitive disadvantage.
Companies need to be able to access as well as interpret data in order to better understand their customers. If data flow was interrupted or lost from the EU, this would mean UK businesses wouldn’t be able to provide a true personalised customer experience; something that is heavily expected in today’s economy.
So, there is the potential for it to impact innovation. It could also have an impact on investments too. Foreign investors may be less likely to secure deals with the UK following the way Brexit was handled. There is also concern that the GBP will go down by 7%, which would also significantly impact investments.
At the moment, the tech sector hasn’t been negatively impacted by Brexit. However, there are concerns regarding innovation and investments which do need to be addressed.
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