One in five startups based in the UK are considering moving to Europe in the wake of the Brexit vote. According to a survey of over 940 companies, 21% of UK startups are thinking about relocating to Europe ahead of Brexit. While 1% have firmly committed to moving their headquarters to Europe, 62% have ruled this out as an option.
The biggest concern among startups is that their non-British employees are unsure about their future eligibility to continue working in the UK after Brexit. Others have cited concerns about being able to secure venture capital funding and that this would coincide with an increase in business running costs.
Despite this uncertainty across the startup industry, 89% of those business owners surveyed responded that they are planning to take on more staff in 2017 and only 1% reported that they are planning to cut hiring.
Startups aren’t the only industry facing the Brexit squeeze, and it would seem that no industry will remain untouched. Another survey conducted by LinkedIn revealed that there was a sharp decrease in the amount of university-educated professionals from around the world seeking employment in the UK immediately after the Brexit vote.
This news comes following the announcement that Lloyds bank is considering moving their operations to Berlin, while HSBC is also in the process of moving 1000 of their staff from London to Paris. Swiss bank UBS also confirmed that around 1000 of its 5000 London jobs could be at risk because of Brexit.
Despite this news, the initial shock of the Brexit vote and the blow to business confidence appears to have stabilised. This boost in confidence is largely down to the weakening pound which has boosted export trade to Asia Pacific and the Middle East. According to a report from the Lloyds banking group, the business confidence index rose from 12% in September to 14%.
The weakened pound has had a positive impact on exports and tourism, as the UK became a cheap destination for overseas visitors. 2017 is set to be a record year for tourism, with 38.1 million tourists expected to visit the UK, thanks in part to a slew of literary celebrations.
If you’re hoping to secure a job in the UK, find out more about which visa is right for you.