Start-ups mull Europe offices in face of Brexit drain on skills

A fifth of UK-based technology start-ups are drawing up plans to open European offices in response to Brexit as concerns rise about a lack of skilled workers.

Some 21% said they are keeping their headquarters in the UK but opening a European outpost, according to a survey of almost 140 UK tech and healthcare start-up executives by specialist lender Silicon Valley Bank. Of those surveyed, 11% are considering shifting their base to Europe.

The findings come amid concerns about a shortage of IT talent in the UK after Britain leaves the EU.

Three out of four start-ups said access to talent was their most important public policy issue while 96% admitted it is challenging to find people with the right skills to grow their businesses.

Phil Cox, president of Silicon Valley Bank’s UK arm, said that there is more hope of relaxed rules for skilled foreign workers.

“These companies’ biggest concern for about three or four years has been access to talent and that is obviously the biggest thing they’re watching for [during Brexit negotiations],” Cox said.

“But there is a lot of faith in the fact that something will be figured out, especially for skilled workers being able to move across borders.”