Will Brexit still cause chaos for UK tech industries?
With Britain’s exit from the EU creeping ever closer, the impact that visa restrictions may have on those working in the tech industry is something that is becoming an acutely prevalent issue for both individuals and businesses - especially for businesses having to think about filling a Sponsor Licence application.
While the potential difficulties for other industries that are affected by border controls and import taxes have been well documented by the British press, the ramifications for the tech industry have been largely overlooked.
For instance, Oliver Smith has noted that the overwhelming preoccupation with how hard Brexit will hit the fishing industry is surprising when you comparatively consider how much the UK’s digital sector contributes to the economy. While British fishing boats brought in £980 million worth of fish in 2017 and was responsible for employing 11,700 fishermen, it’s overall contribution to the economy of £1.4 billion is only marginally higher than that of the video game industry, coming in at just over £1 billion.
Furthering that, in November 2018, the Department for Culture, Media & Sport (DCMS) reported that the industry directly employed 20,430 people - nearly doubling that of the fishing industry. Yet video games are just a very small section of a wider industry of tech: the manufacturing of electronics, computers and factory equipment also contribute £3.7 billion to the economy.
Of course, all of this would not be possible without the potential to employ highly skilled workers in the sector. In some cases, employers are looking for a specific skill set that can only be sourced from the EU and beyond. In a sub-section dedicated to the Tech sector, the CBI’s August 2018 report noted that the demand for digital skills is rapidly outstripping the supply of domestic workers due to the increasing importance of technology in all industries. By 2030, it is estimated that there will be 1.5 million further jobs created in the varying technology sectors. Taking into account that there are currently only 1.42 million unemployed individuals in the UK - and most likely without the relevant skills - we will have no choice but to look further afield in the world for our workforce.
Potential impact
With the White Paper documenting new guidelines laid out for workers looking to enter Britain, the Government has painted these changes in a positive light for the tech industry. However, whilst removing the 20, 700 cap on ‘skilled individuals’ entering the country per month on a Tier 2 Visa, there is still the issue of the 30k minimum salary requirement to be able to be apply. The White Paper puts frequent emphasis on attracting highly-skilled workers, but there is a greater knock-on effect from losing the labour force that is classed as ‘low-skilled’ in the industry – such as computer technicians.
The abolishment of the cap is a relief for those already working in the tech industry since the cap remaining intact after Brexit would’ve resulted in many talented individuals being turned away from a fruitful tech career in the UK. However, the largely unreported strength of the tech industry lies in its low-paid workers. Workers such as technicians and labourers who oversee the practical nature of the work and make sure that everything runs smoothly are more important than ever as technology has become one of the most prevalent and fast-growing sectors in Britain’s modern society.
What this means for employers
Looking further than merely the talented individuals that we are looking to attract to the country, the effect on UK businesses in the tech industry is also highly notable. The current sponsorship structure for workers born outside of the UK means that employers must apply for a Sponsor Licence before they can employ foreign workers in the country. The worker is not able to transfer this sponsorship if they change employers which can be awkward for those who have to travel or transfer where there is demand for them, particularly in the construction sector. This has a knock-on effect for the UK tech industry as it creates shortages in the labour force that is needed to support the rapid advances in technology that demand structural changes to buildings, installations of power lines, and laying down of telephone cable. In order for UK employers to maintain an A-rated licence, the company will need to fulfil all of the relevant sponsor licence requirements.
Fortunately, the Immigration White Paper hints that employers will no longer have to undergo the Resident Labour Market Test – a 28-day process in which vacancies are first advertised to local talent – before sponsoring a worker from abroad. This will mean that businesses will be able to hire talent instantly, rather than getting bogged down in a complicated screening process. The government has been keen to place emphasis on an idea that the amendments to the system will be more ‘straightforward,’ ‘light touch,’ and at a ‘low cost to employers.’ They have also stated that one of their aims is to ‘keep reporting requirements and upfront costs for employers to an absolute minimum.’ But whilst these claims are ostensibly positive, there is a definite lack of clarity in exactly how employers seeking a Sponsorship Licence will find this process to be more straightforward in practice. Furthermore, their promise to keep an eye on employer sponsors ‘to ensure that they are proportionate to the objective of minimising immigration abuse’ is a discomforting phrase that adheres to the unpleasant ‘hostile environment’ narrative.
Looking at all of these regulations that face both individuals looking to apply to be working within the UK tech industry, and the also the companies that would be looking to employ the bright new talent, the increasing problems and delays that Brexit forces upon the sector is potentially detrimental to innovation within the field.
In an ever-evolving society, the tech sectors of major companies are becoming more fundamental than ever to the success of Britain’s businesses. Without being able to have access to primarily the relevant staff for labour, but also those with specialist skills, a dangerous future awaits the British tech industry post Brexit.
About the author
Alice Williams is a content writer and commentator for the UK’s leading Immigration Advice Service.