What About the Digital Single Market Mrs May?

March 29th signalled the start of a process both hotly anticipated and lamented, which for the tech industry means hiring practices are under increasing instability. Prime Minister Theresa May has invoked Article 50 and signalled the official exit of the EU. Of serious consideration are the centrality of current promises to the tech industry by the Government, and what challenges lie ahead as the negotiations begin.

First and foremost, the Government has promised to ensure Britain’s fastest growing sector remains the European, and in some respects Global, chief of technological development. London remains at the core of technological prowess, and to compete with rising stars such as Berlin, Estonia and Lisbon, the EU needs to be central to the industry’s operations. This is a multi-faceted problem; data sharing, expertise and research are all vital lifelines to the continuing success of London as a tech hub.

One of the largest issues facing Britain’s tech industry during the negotiations is membership of the Digital Single Market, which underpins the ease of mobility for companies. Currently, over 11 billion Euros have been saved for consumers since its inception, improving access, creating a competitive business environment, and driving growth and employment as essential components. The Brexit Whitepaper and Bill fail to address any stance on the Digital Single Market. However, if the tone towards to the Single Market is any indicator, it’s likely Britain will pull out of the Digital Single Market, which will cost the consumer.

Can the tech industry afford a downgrade in access to the EU market? Potentially. The London tech scene is vibrant, successful, and lucrative, and could manoeuvre around the logistics of leaving the EU if the downgrading is minimal. To mitigate damage, the tech industry, and its goliath share of the global digital economy, will need to remain a central priority during the negotiations. This is something we haven’t seen yet. The Government currently waxes lyrical on the importance of the tech industry, yet fails to develop tangible protections.

The key missing link in the Brexit dilemma for the tech industry is sourcing from the talent pool; at what point do policymakers concede on immigration to allow for highly-skilled worker visas in the tech sector? Currently one in six hires over the past year have been from the EU, providing a huge portion of data analytics talent in the UK. This is not including academics, researchers and Europeans locating their start-ups in London and the rest of the UK. Furthermore, increasingly under threat is the creation of jobs due to start-ups locating in Britain, and where that lies for the country post-Brexit.

Unfortunately, as Article 50 of the Treaty of Lisbon is activated today, there is little evidence of future outcomes for the tech industry. Whilst admirable efforts have been made in the way of an Industrial Strategy, little logistical evidence is available on the protections promised. Moreover, if Britain’s tech industry is to weather the storm of unfamiliarity, this Government will need to centralise the importance of ensuring the industry remains as open as possible.


Also published on Medium.