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UK tech industry suffers post-Brexit dip in confidence

Shock drop in confidence as UK grapples with messy EU pull-out

11 Aug 2016

Brexit has shaken the UK tech industry's confidence in the future, according to a new survey.

TechUK's poll of 237 of its members found that just 70 per cent of respondents are positive about the UK tech sector's potential for growth over the next two years, down from 93 per cent in March this year.

Only one in five were very positive, down from 52 per cent in March, while the study discovered that just 22 per cent are positive about the impact of the vote to leave on non-EU exporting over the next two years.

Nearly half of respondents said that Brexit would have a negative impact on foreign direct investment, capital investment, and R&D spend in the UK over the next two years.

The organisation called for tech and the digital economy to be placed at the heart of the UK industrial strategy and negotiating the terms of a new relationship with the European Union.

"This substantial drop in confidence clearly demonstrates the need to be vigilant to immediate and pressing concerns faced by tech companies," said Julian David, CEO of techUK.

"To maintain the sector's exceptional growth rate they need to be confident that they will have access to the digital single market, a talented workforce and that international data flows will be protected."

But David added that there was also an opportunity for the UK.

"Now is the time to develop a world-leading digital infrastructure, and make the UK the place to invest and grow. Government must power this digital revolution," he said.

"Government needs to lead by example and take the opportunity to focus not just on protecting traditional industries, but on growing these industries through digitisation and supporting new industries that will drive the future economy."