UK Businesses: How to prepare for Brexit
This article was originally published on FENews.co.uk.
DeVono Cresa, the UK’s leading occupier-only consultancy firm, has analysed Office for National Statistics data focusing on businesses launched since 2012. The data showed some of the strongest industries in the UK today.
Focusing on the top sectors, DeVono Cresa assessed government advice and data sources to identify possible ‘what-if’s’ should the UK exit the EU without a deal.
Technology sector: a driving force of the UK
The technology sector has become a thriving industry for the UK over the past decade. Whilst the term technology covers a whole range of firms from biotech through to fintech, the sector is a major contributor of both employment and revenue for the country. Technology is driving change in the workplace, not just for its own businesses, but that of others by introducing new, software, hardware and working practices.
Brexit Impact: The technology sector seeks to attract talent, especially younger resources, from a global labour pool. If restrictions are out in place then businesses may struggle to recruit, which in turn could hamper growth plans. From a competition standpoint, other geographies could become easier to access and operate in.
Government advice currently points to programmes that require cross-border collaboration with EU partners. If the UK leaves with a deal, the financing of UK organisations which partake in EU programmes will continue. This means that all Creative Europe, Europe for Citizens and CEF (T) projects will continue as now and be fully funded under the current 2014-2020 Multi-annual Financial Framework.
However, as a result of Brexit, many cross-border programmes which require collaboration will see delivery complicated. The UK is yet to create a framework facilitating continued participation in these programmes - something that is vital to sustaining the sector’s continued upward growth trajectory. Alternative plans are underway, however, to enable organisations to complete and deliver across these projects.
If the UK exits the EU without a deal, and should the EU cease to fund UK organisations after Brexit, the current Conservative government has created a funding guarantee for participating organisations.
Projects will no longer be able to continue in their existing form in the event of a no-deal Brexit. Instead, they will be assessed as to whether they can be modified without departing too significantly from the initial objectives set.
A no-deal Brexit will affect many cases in the UK, with UK beneficiary companies no longer able to receive funding. Participants will face termination of their existing programmes if they no longer meet eligibility requirements.