The trade and security deal the UK Government struck with the EU is a bare-bones deal for tariff-free trade in goods. For many other business sectors that are not covered by the trade deal it means a no-deal outcome creating significant frictions and less EU market access from 1 January. Below we explore what it means for the Technology, Media and Telecoms industry.
Tech and media are supposed to be one of the main economic drivers in post-Brexit Britain. It remains to be seen if US companies still consider the UK a good hub for their European investments.
The UK continues to be a key platform for growth and international expansion outside of the US, with sectors such as tech and media leading the pack in embracing the digital revolution and being better able to pivot in a pandemic than other industries.
One example recently quoted by London & Partners is Fintech which weathered the crisis in 2008 and continues to scale and expand globally. In 2020, London’s fintech sector has attracted $3.6bn in venture capital investment between January and September which puts London in second place globally, behind San Francisco with $5.1bn and ahead of New York’s $2.2bn.
There will also be challenges ahead, particularly around supply chains involving equipment, which is likely most relevant to the telecoms sector, but all these groups should evaluate their global supply chains to assess potential impact.
The other area of importance is regulation, most relevant to telecoms and media businesses who currently have access to favourable EU-wide regulatory rules. Many groups in these sectors rely on EU-wide directives as the framework for their UK and EU businesses. Brexit is likely to have an impact either short term or longer term as the UK starts to make its own regulations. Groups should evaluate their structure, supply chains and employee footprint to assess the potential impact and look for opportunities in the UK going forward.
Would you like to know more?
If you would like to learn more about how Brexit may impact you, please visit our Practical Guidance: Brexit hub here.
And if you have any questions or would like to discuss your specific circumstances, please get in touch with your usual Blick Rothenberg contact or one of the partners on this page.