U.K. Chancellor Dismisses Post-Brexit Technology Flight Threat

Brexit or not, staying data compatible with Europe will be critical, the U.K. Chancellor of the Exchequer Philip Hammond said, according to Bloomberg.

"I don’t believe tech companies will fly to Europe," said Hammond, speaking at Bloomberg’s “Sooner Than You Think“ conference in London. "Data is going to be a big issue. Managing our future data regulatory regime that is compatible with European regimes is going to absolutely be an issue.“

Technology startups in London attracted a record 2.56 billion pounds of venture capital investment in 2019 through May 31, according to data published by London & Partners, the city’s official lobbying arm. Even with the uncertainty surrounding Brexit, and the possibility of a shifting landscape for financial firms, U.K. fintech companies continued to lead Europe in terms funding, taking in $645 million in the first quarter, according to a recent report from CB Insights.

However, Hammond warned that the U.K. should not be complacent in attracting new tech companies, adding that the threat of a chaotic Brexit remained a major risk. “So long as no-deal is a risk we need to retain that war chest to protect our economy from the initial shock of no-deal,“ he said. “There will be a lot of businesses and individuals who need support.“