EU exit would damage business, warn UK technology firms

TechUK survey finds British technology firms overwhelmingly in favour of remaining within the European Union

British technology companies are overwhelmingly in favour of Britain staying in the European Union, and many believe that if the EU referendum results in a vote to leave it could be harmful to their prospects.

Those are just some of the findings of a survey by technology trade association TechUK, which discovered that members feel that the technology industry benefits from the UK's membership of the EU and worry they'd have less influence if a decision was made to leave.

It comes shortly after representatives from the technology argued that another government policy - the Investigatory Powers Bill - would damage investment in Britain.

Technology companies are positive about the benefits of the UK remaining as part of the EU with 71 per cent of respondents stating that they see ‘stay in the EU, with reform' as the preferred option for their business. A further 17 per cent told TechUK they'd like the UK to stay in the EU, regardless of the outcome of any proposed reforms.

Respondents are positive about the benefits of remaining part of the EU, regardless of their size. Seventy-four per cent of micro firms said that staying in a reformed EU was their most preferred option, with 61 per cent of small firms stating that this was their preference. Seventy-six per cent of medium firms also stated that staying in the EU, with reform, was their preferred line of thinking on the matter.

"Tech companies are not starry eyed about the EU, they see all of its imperfections. But with customers and suppliers across Europe, these companies are saying the benefits of membership outweigh the costs. They want the UK to help drive the reforms that Europe needs to become more open, innovative and competitive," said Julian David, CEO of TechUK.

"The UK tech sector is a powerful driver of economic growth. This success has been enhanced by the access UK tech firms have to EU markets. The issues keeping our members up at night - economic uncertainty and access to a skilled workforce - would not be improved by a decision to leave the EU," he added.

According to the survey, the top two priorities for EU reform for TechUK members are a more open and competitive single market and the creation of a "digital single market", along with improved processes for assessing new regulations and reducing the cumulative regulatory burden.

"Many TechUK members will have to be compliant with key EU rules and standards whether or not the UK is a member of the EU. They want the UK at the table, making the pro-innovation case on the big decisions shaping the future of Europe's digital economy," said David.

The prospect of Britain leaving the EU does worry technology companies with 78 per cent of concerned the UK would lose influence on the issues that impact their business as the result of a no to Europe vote.

"We don't yet know the exact circumstances in which the EU referendum will be contested. Right now, the view from the tech sector favours staying in, on the basis that the UK can drive reform from the inside," David concluded.