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UK Tech Sector Reacts To Brexit: Some Anticipate Slow Down, Some Contemplate Relocation 535

In the aftermath of the United Kingdom voting to leave the European Union, UK's technology industry is reassessing its position, with many of them considering moving to a continental location. According to reports, Samsung, LG, and Acer have noted that the UK leaving the EU will affect their operations. From a BBC report:As news of Brexit broke, tech firms including BT, TalkTalk and software firm Sage reported share price falls. [...] "I have concerns that the local market might slow down," said Drew Benvie, founder of London-based digital agency Battenhall. From a report on The Guardian:Britain's financial technology sector is particularly hard-hit, with the prospect of losing access to European markets an unappealing one. "Fintech" has long been one of the UK's most promising growth areas, in part due to London's position as the financial capital of Europe. [...] Not one of the 14 billion-dollar tech firms based in the UK the Guardian asked said leaving the EU would be good for their business.Toby Coppel, the co-founder of venture capital firm Mosaic, said: "The next entrepreneur who's 22 years old, graduating from a technical university in Germany may, instead of moving to London to do their Fintech startup, decide to go to Berlin instead. I think that's one of the biggest concerns I have about the trajectory of the London technical ecosystem."
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UK Tech Sector Reacts To Brexit: Some Anticipate Slow Down, Some Contemplate Relocation

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  • by Anonymous Coward

    has zero people born in the UK and about sixty people born in the EU, this is going to hurt. The UK economy is driven by people that are not from the UK, even if the vast majority of the the people driving the economy aren't from the UK.

    • Yeah, when someone anonymously posts something that's completely unverifiable, I'm going to assume it must be true. Sure I will. Starting... now.

      • by ledow ( 319597 ) on Sunday June 26, 2016 @03:39AM (#52391785) Homepage

        I can't share the exact quote with you, but my girlfriend is a Dr in a London hospital department. Her lab basically tells you if you have cancer if you are one of the millions of people who live in or around London.

        In her department, which requires high-end medically-skilled professionals, her boss posted after Brexit. The basic gist was "Don't worry, everyone, your cancer diagnosis will still be safe in the hands of our department consisting almost entirely of Spanish, Italian, German, French, Polish, Greek, ...... personnel for the time being".

        Throughout the NHS the picture is the same. Majority EU and then Non-UK workers. Or universities. Almost all the major universities have majority non-UK lecturers and professors (which actually means something here - a professor is a much higher grade of personnel than in the US, you'll be incredibly lucky to meet a professor outside of academia).

        And it's not just as simple as "things will carry on". My girlfriend came over as an EU citizen. She has "leave to remain", so she can stay and live and work in the UK. But to get permanent citizenship, she would have to marry or go through a lengthy immigration process (including a stupid test asking questions about kings and queens that I, as a natural Brit, would be baffled by). Coming out of the EU could revoke that leave to remain. Nobody's sure at the moment and we only have two years to work that out.

        If that's taken away, or the paperwork involved in heinous, or even if the process that's required is overwhelmed by all the EU people working in the UK suddenly applying to stay here, then you have quite a situation that is an awful lot of effort to sit through. And they are already disgusted and feeling unwanted because of the Brexit vote.

        It's like a state voting itself out of the USA. Imagine how you'd feel as the out-of-state worker who's just been voted against, made to feel unwelcome, contemplating being in a "foreign" state, and may have to jump through all kinds of hoops to carry on your normal life that you've had for YEARS.

        We're going to lose an awful lot of talent, from students coming to our universities to the lecturers teaching them, from the waitresses on minimum wages to the doctors earning a fortune. And there's no way that it will become a zero-paperwork process for any of the above, which just adds costs and hassle.

        We're now basically a foreign country. If you're American you may not understand that - do you have automatic right to live in any other country in the world? Because before the vote, we have had that guaranteed for decades. We can just up sticks, go to Sweden and start up a life like anyone else, without even bothering with paperwork or visas.

        We've (potentially) just thrown that in the bin, which means a lot of people who found that convenient and wanted to live in Britain are now unwelcome and may be forced to leave, or put under such scrutiny that they decide to go to one of the other dozens of countries just 30 miles away, where they don't have any of that hassle.

        Watch the NHS, education, and the large businesses. They're all about to suffer, even if they don't immediately collapse.

        • by blind biker ( 1066130 ) on Sunday June 26, 2016 @06:14AM (#52392157) Journal

          I can't share the exact quote with you, but my girlfriend is a Dr in a London hospital department. Her lab basically tells you if you have cancer if you are one of the millions of people who live in or around London.

          In her department, which requires high-end medically-skilled professionals, her boss posted after Brexit. The basic gist was "Don't worry, everyone, your cancer diagnosis will still be safe in the hands of our department consisting almost entirely of Spanish, Italian, German, French, Polish, Greek, ...... personnel for the time being".

          This is proof of class warfare at its best (worst): the financial elites have figured out that paying for highly skilled personnel educated in Britain was too expensive. It is much better to import highly educated but cheaper labor from abroad. Incidentally, Britain used to have effectively free higher education a couple of decades ago, but the same financial elites (who hold the real power, including political) decided that such social benefits are now unnecessary, since labor from abroad comes pre-educated.

  • From what I can tell (Score:5, Interesting)

    by rsilvergun ( 571051 ) on Saturday June 25, 2016 @11:43PM (#52391323)
    the trouble with Britain and America right now is that there's been 40 years of policy that benefits well educated upper middle class college grads and hurts blue collar workers. The Blue collar guys sucked it down in stride for those 40 years but it sounds like they're at their wits end. They're desperate to do _something_ but they don't know what. They've got a lot of ideology and beliefs that make it hard to go the Scandinavian Socialism route to solve their economic problems and there's no way they can compete on a global stage with slave labor let alone the coming robots. But they've got to do something Britain gets "Brexit" on over here we get Trump.

    Not sure about the UK but 20 years ago phone polls would like the upper cast keep tabs on voting patters and focus their political campaigns, but now that everybody has a cell phone and you can't do polling calls to them the old political tricks aren't working. It doesn't do any good to have even unlimited funds if you don't know where to put them and you needed those phone polls to tell you what to do next. So Britain had no idea Brexit was coming (Cameron's resignation showed that) and the US is desperately trying to Stop Trump...

    It's gonna get really, really messy from here on out.
    • the trouble with Britain and America right now is that there's been 40 years of policy that benefits well educated upper middle class college grads and hurts blue collar workers.

      The problem is not "policy" but "reality". The modern world values knowledge and education. You are not going to do well if you have no skills and are competing with a servo motor.

    • Re: (Score:3, Interesting)

      by Solandri ( 704621 )
      While I agree with the white/blue collar angle, there's more going on here than that. Ideally a unified economy is most efficient. Same standards, same regulations, same processes, policies, etc. promotes efficiency. A business doesn't have to jump through a dozen hoops to sell their products in multiple countries, they just have to jump through one.

      Practically, a big unified economy is highly unlikely to always develop the best set of standards, regulations, processes, policies, etc. There are just
      • by RichPowers ( 998637 ) on Sunday June 26, 2016 @01:01AM (#52391495)

        "I see similar signs from the U.S. (300 million people), where increasing polarization suggests different groups of people (not necessarily divided along state lines) seem to have different ideas for the best way to proceed, but are getting more and more upset at each other for forcing everyone to go either one way or another."

        Montesquieu believed that republics could only survive if they were small. I'm sure this was influenced by his study of the ancient Roman Republic and how it turned into an empire ruled by autocrats and generals. (See "Considerations on the Causes of the Greatness of the Romans and their Decline" -- very readable and considerably shorter than Gibbon's more famous work on the subject.) The fact that tiny Switzerland is probably the most sensible republic in the West is due, in part, to its very smallness.

        The Framers of the U.S. Constitution were familiar with Montesquieu; indeed, the entire point of the federal system was to (attempt to) harmonize the need for a stronger federal government to handle things like shared security and trade while still leaving considerable sovereignty to the states.

        So to your point: if California wants to be the next socialist utopia with a massive welfare state and useless state-funded high-speed trains, have at it! Likewise, New Hampshire can go full libertarian. It's the whole "laboratories of democracy" concept – different ideas for different groups of people. Totally scalable regardless of population, if the federal government lets it happen, and lets states fail or succeed on their merits.

        But Washington directs and influences too much of the economy, e.g., the military-industrial complex is a massive jobs and pork project for literally millions of people. The federal executive branch has so grossly overstepped its constitutional functions that it's horrifying and disgusting. Trump and Clinton would be far less dangerous to the republic if the office was considerably more modest and Americans didn't treat the President as some messianic figure who will deliver them jobs and other goodies! (Remember the days when presidential candidates ran "front porch" campaigns and submitted simple State of the Union letters to the congress instead of performing embarrassing and grandiose speeches?)

        The problem in the Western World is the rolling disaster that's political and economic centralization. Brussels, Washington, the central banks, and other supporting institutions are all guilty. Among other ills, they create massive economic distortions (see the current college education bubble) and when everything inevitably explodes, they "save the day" – sort of like the fireman who burns down his own house and trumpets the great job he did later putting out the fire.

        Lastly, dwell on this fact: the House of Representatives has had 435 members for almost a century, despite the massive growth in both population and size of the federal government. This means the ratio of citizens to representatives only grows more unfavorable, and at a time when it matters most! Concurrently, U.S. senators are no longer selected by state legislatures, leaving state governments without any way of directly influencing federal legislation. This is a total disaster for the federal republic and the chickens are coming home to roost.

        • by ultranova ( 717540 ) on Sunday June 26, 2016 @03:57AM (#52391841)

          So to your point: if California wants to be the next socialist utopia with a massive welfare state and useless state-funded high-speed trains, have at it! Likewise, New Hampshire can go full libertarian. It's the whole "laboratories of democracy" concept â" different ideas for different groups of people.

          What happens when one of these collapses under the insanity of its economic idealism and the population takes refuge on the other?

          The problem with the "laboratories of democracy" concept is that humans aren't lab rats and won't just quietly die in their cage if the experiment fails.

          The problem in the Western World is the rolling disaster that's political and economic centralization.

          First centralization ended feudalism. Then it ended the cycle of European wars that had been going on ever since Rome fell. Now the growing international economic institutions have made it all but impossible for the Great Powers to fight wars with each other, while political ones are busy closing the ozone hole and trying to deal with global warming. If this continues we'll have peace, prosperity and clean air! Oh the humanity!

          Humanity has been building larger and more complex societies ever since the dawn of history. It's not a "rolling disaster", it's what lets me sit in front of my computer in a lazy Sunday morning, sipping coffee and writing this message, rather than trying to eat my maggots quietly so I'll hear when the neighbouring tribe comes to kill me for them. As far as I'm concerned, we need more, not less, centralization, since it enables life to be more than just a constant struggle for survival.

          Among other ills, they create massive economic distortions (see the current college education bubble)

          Education is an ill now? Perhaps you're referring to the college debt crisis caused by college education in the US being handled by for-profit private institutions rather than the state?

        • by AthanasiusKircher ( 1333179 ) on Sunday June 26, 2016 @10:12AM (#52393007)

          But Washington directs and influences too much of the economy, e.g., the military-industrial complex is a massive jobs and pork project for literally millions of people. The federal executive branch has so grossly overstepped its constitutional functions that it's horrifying and disgusting. Trump and Clinton would be far less dangerous to the republic if the office was considerably more modest and Americans didn't treat the President as some messianic figure who will deliver them jobs and other goodies!

          Just wanted to note, since you mentioned the fall of the Roman Republic, that this sort of thing is precisely the flaw that arguably brought down the Roman Republic. The "root password" to any political system's governing structure is always appeasement of the masses. Montesquieu skips over the early elements of this story in Rome, but one of the harbingers of doom for the Roman Republic happened with the Gracchi brothers [wikipedia.org], who were some of the earliest Romans to seek radical populist reform. Concern about the rural poor and the plight of military veterans led to their attempts to circumvent many of the traditional Roman principles... including ignoring previous checks on power and re-election in their offices (Tribune of the Plebs). The Roman senators had the good sense to club Tiberius Gracchus to death.

          The parallels to the Great Depression, Dust Bowl (affecting rural poor), marches of WWI veterans on Washington, and FDR's shocking election to 4 consecutive terms are just too numerous to go into a detailed comparison. After FDR's "New Deal" was repeatedly thrown out by the Supreme Court as being unconstitutional, finally the switch in time that saved nine [wikipedia.org] overrode federalist principles in the Constitution that had functioned since 1789.

          Now, of course the U.S. has gone on a different course than Rome did (with the upheavals under Sulla, Marius, etc.). But it's a little scary to me that the Roman Republic essentially lasted only 84 years after Tiberius Gracchus set it on the path toward ruin in 133 BC. Caesar crossed the Rubicon in 49 BC, and was effectively declared dictator for life (after a series of consecutively consulships), effectively moving the Republic into an imperialist empire.

          I'll just note that FDR was elected in 1932 with populist rhetoric to overturn the old Constitutional constraints on government power. It's now 2016, 84 years later, and we have the threat of a Trump presidency, a guy who seems to view his position in the world as dictatorial to say the least.

          I'm not some crazy numerologist -- just noting that the timeline between when the Constitutional breakdown started to occur and where we are now is a shocking coincidence. It's sad that the generation around the 1930s was when Latin study and Roman study of the classics really started to be expunged from school curricula. For the past several decades we've been starting out on a track toward dissolution of a Republic and toward an Empire -- something the Founders, who were very aware of Roman precedent when they designed the government, hoped to prevent. But few people know about such history anymore, so they don't see the danger.

          For all you guys who like to make fun of liberal arts majors... here's why history is important to know something about: to avoid making the same mistakes others have in the past.

      • by Calydor ( 739835 ) on Sunday June 26, 2016 @01:01AM (#52391497)

        It is not only a matter of being too big, the EU spans too many countries with too varied economic backgrounds and stabilities.

        I'm not only talking about Greece; the former east bloc countries like Poland are also a problem because they use the same currency but needs a lot LESS of it for the same gain. In an extremely simplified version, numbers completely made up:

        In Poland, a loaf of bread costs 1 Euro. Hourly wage is 5 Euros.
        In England, a loaf of bread costs 2 Euros. Hourly wage is 10 Euros.

        So far, so good. Basic necessities cost the same percentage of your wage, not much difference. However ...

        In Poland, a loaf of bread costs 1 Euro. Working in England for 8 Euros per hour lets you gain a lot more back home while wage dumping in a country that isn't your own. With enough people doing that problems start growing for the host country.

    • by getuid() ( 1305889 ) on Sunday June 26, 2016 @02:03AM (#52391607)

      Not going to change much for the average person.

      EU is a bunch of national politicians patronizing their voters first, by introducing unpopular laws and measures they couldn't possibly introduce directly.

      Then it's the same national politicians patronizing each other across borders -- Greece, Italy, Spain, Britain, even Germany... everyone gets their share of being patronized against doing useful stuff, necessary for the middle and the lower class citizens.

      Last but not least everyone is being patronized by Big Business, who's effectively running the EU.

      If Brits succeed in exitting, then if anything, it will at least show the rest of the EU conuntries that doing things just "because EU" is not the only option. That hast at least a marginal hope of getting some useful change.

      Don't get me wrong, the concept of a unified Europe is cool. But the EU is not a unified Europe, it's a patronizing institution run by business, for business. We can try this again in 20 years, properly done, startgin democratically first and economically later, not the other way round.

  • "Toby Coppel, the co-founder of venture capital firm Mosaic, said: "The next entrepreneur who's 22 years old, graduating from a technical university in Germany may, instead of moving to London to do their Fintech startup, decide to go to Berlin instead."

    GOOD!
    Go to bloody Berlin and allow some of the locals to have a job!?
    Globalisation is fan-tastic for a small portion of very highly skilled people. If you're mid-skilled or lower, you are _boned_. Unemployment is up, wages are down.

    Sure we can buy a $6 toaster from China and have a website built in India for $300 but your average person is NOT better off. Globalisation is screwing a heap of people.

    • Globalisation is screwing a heap of people.

      Well, you've really screwed the pooch then.

      Globalization as it's usually framed is essentially free movement of goods and money, without the free movement of labour. This is great for companies as they can always move things to the cheapest area and since the labour can't follow, they get to squeeze people regionally.

      Being in the EU we had free movement of people.

      Being outside we'll wind up with a bunch of agreements, i.e. free movement of goods and money (benefici

  • I suspect the Asian nations will be pleased with brexit simply because they get access to the British market and goods without the EU getting in the way. Maybe this will be the end of expensive DSLR cameras that are limited to 29'59" of recording because the EU arbitrarily defined 30 minutes or more as a video camera and slapped much higher tariffs on them.

    Maybe the next couple years will be time to invest in Britain rather than try to escape. Look at both sides of the possible effects before you jump.

    {^_^}

  • Why have a border? What is the purpose of a border? It is to keep people out because you think they are evil, will drink the milk out the bottle from your fridge, look ugly and smell bad too. Why should poor countries be stuck with keeping the bad people when they would do more damage? At least the richer countries can catch the criminals and jail them or something.

    Gotta look out for "your own" .. but is that even moral? Does God value the human life of a person in one country over another? You can allow t

  • The primary issue for the tech sector will be that the UK can no longer be used to take advantage of "the final assembly tariff loophole".

    This is where you do all but the final assembly elsewhere, and then ship the parts to some EU country for final assembly, making it therefore "Manufactured in the EU". This exempts the product from a number of tariffs, and additional VAT.

    This is the European equivalent of "the NAFTA loophole", where you ship the parts to a Maquiladora to avoid a U.S. tariff,and then asse

    • Didn't you know? You aren't allowed to talk about that kind of stuff. It doesn't exactly square with the "We're all gonna die in agony" crap we're getting from the mainstream media.

    • Comment removed based on user account deletion

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