The future sustained growth of Scotland’s flourishing tech sector is at serious risk if it is not fully supported in the build-up to Britain’s withdrawal from the EU, according to a leading business and financial adviser.
Grant Thornton is warning the sector faces significant challenges in a post-Brexit economy, including its ability to attract key talent from overseas, tackling the growing skills gap and securing financial backing from international investors.
Approximately 84,000 people currently work within Scotland’s technology sector in a wide range of disciplines and business sizes. The industry has expanded by almost 45% in the last five years, a rate of growth second only to London.
But growing political and economic uncertainty has raised fears that start-ups and growth-hungry, internationally focused firms will consider moving their operations outside Scotland, if no bespoke support can be offered by both Holyrood and Westminster.
Andrew Holloway, Head of Technology in Scotland, at Grant Thornton, commented:
“Scotland’s tech industry has been going through a bit of a honeymoon period, with relentless growth and a sense of genuine optimism about the future. The Brexit result dealt something of a blow to an industry that needs to be able to easily attract and retain key talent from across the globe.
“The Scottish and UK Governments have both been particularly keen to support the growth of such an important industry and measures such as R&D tax relief have provided a shot in the arm for many start-ups. What we now need to see is that support extended so that businesses are protected from any significant potential Brexit fall-out. By working together with the sector, and in partnership with other important players such as universities and colleges, we can ensure that industry continues to play a crucial role in the future success of Scotland’s economy.”
The view is shared by RookieOven – an organisation launched in Glasgow in 2011 to support tech start-ups and create greater collaboration in the community. Founder, Michael Hayes, added:
“Clearly more has to be done in terms of education and fostering the next generation of tech talent in Scotland. Across the board, from design and marketing to development and technical skills – schools, colleges and universities simply aren’t teaching enough useful content to ensure that, as a country, we’re producing future tech stars.
“The impact of Brexit combined with fierce competition from regions like Silicon Valley means we need to look at how everyone, from politicians to educators and industry leaders, can work together to minimise any long term negative impact and ensure that we’re hiring the best talent from around the world, future proofing tomorrow’s leaders and guaranteed access to the global marketplace.”
Michael McKiernan is Head of Finance at Axis Animation – an international studio of directors, designers, animators, writers and producers, based in Glasgow. He added:
“Thanks to a lasting history hosting the television and film industries, the UK has long stood as a world leader in the animation and visual effects sectors. However, like any UK creative company, Axis serves a global client base, and exists within a truly international professional community.
“Of the total workforce across the UK sector, it’s estimated around 31-35% are EU nationals, while some 12% hail from non-EU countries. Those figures correlate comparably to our experience at Axis, where we are devoted to employing the best talent there is.
“There is a genuine concern that – in the wake of a UK exit from the European Union – the proposed restrictions and controls around the movement of EU nationals will impact our ability to attract and retain highly skilled talent to come and work in the UK. That, in turn, may weaken the UK’s position as a global leader in animation and VFX work.”