The 31st January 2020 marked an historical date on the global calendar when the UK left the EU. The UK industries which may benefit from the monumental decision is still yet to be determined however there is positive optimism certainly for technology startup businesses and the industry as a whole.

What is certain is that Boris Johnson’s government will not align with EU rules in terms of trade even if means that we may have to trade under World Trade Organisation (WTO) rules instead.  Whilst some business groups will not be happy about this, others see it as an investment opportunity which will give our country further independence from EU regulation.

Companies who use European businesses as part of their supply chain are likely to be the hardest hit as new tariffs are introduced which could see increases of up to 10%.  Car manufacturers are especially vulnerable in both the UK and Europe whilst chemical and drug makers, clothing, shoes and textiles manufacturers could also become exposed.  The financial industry may also notice some loss as Europe sees some companies frozen out of markets especially in Paris and Frankfurt.

UK Technology startup businesses have an opportunity to lead

On a positive note, the UK now has increased opportunity to lead on technology innovation by setting itself as an ambassador. We are already home to many technology startup businesses and IT companies across the UK.  To date the EU have imposed stricter rules and restrictions in technology innovation and especially around facial recognition. With the UK now free of these restrictions there is the potential for UK technology start-up businesses and innovation companies to design new technological advances and benchmark themselves as a technology hub in an even stronger position in relation to the rest of the world.

Are you looking to set up technology startup businesses? Crendon Insurance offers technology startup business insurance which include professional indemnity cover, employee and public liability coupled with technology insurance and intellectual property insurance.  We provide your companies with the protection it needs to bring products and services to market. For further information please contact our technology start-up business insurance team.

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