The service sector makes up 80% of the UK’s economic output and brings in huge amounts of revenue for the country every single year. While the UK and EU agreed to a Brexit deal on the movement of goods, there is effectively no deal for services. UK companies have lost the right to provide services in many sectors outside of the EU.
The financial services sector contributes over £132 billion each year to the UK economy, representing around 6.9% of total economic output. While the UK and EU agreed a Brexit deal, the financial services sector remains in somewhat of a limbo. Digital services is an all-encompassing term, referring to electronic, telecommunication and broadcast providers of download or stream media, apps, online software, e-learning software, e-books, online journals and dating or similar membership websites.
Business Sectors
Financial Services
Digital Services
Professional & Consultancy Services
This sector contributed £225 billion to the UK’s economy in 2019, and made up around 13% of the UK workforce. On top of that, the EU makes up 37% of its exports. A Brexit deal may have been agreed, but the professional and consultancy services sector still remains vulnerable.
Movement Of Goods Services
As part of the Brexit deal, the UK and the EU have agreed to 100% tariff liberalisation. A zero tariff quota deal means that there will be no tariffs or quotas on the movement of goods between the UK and EU countries. Instead, customs documentation is required, and VAT accounting requirements have changed.
Gambling Services
Many UK gambling businesses will be forced to appoint an EU representative to help meet the standards for EU gambling regulations. This will ensure that they have the privileges that the EU gives to its local operators so that they can still offer their full services within the EU.
Gaming Services
From its impact on recruiting young and diverse multinational talent, to the barriers it has created to cross-border data flows, Brexit has had a huge negative impact on the UK gaming industry. Gaming businesses may need a presence within the EU to help meet the standards of EU gaming regulations.
Private Security
The private security sector has thus far faced minimal impact since the passing of Brexit. The industry is actively being promoted to increase talent and employment. Industry leaders have foreseen the challenges ahead and are making plans to support the workforce. Overall, the private security sector will mostly be affected by how CEOs and business leaders respond to new employment legislation.
Telecoms, Broadcasting And Electronics Sector
The telecommunications sector is considered part of the UK’s critical national infrastructure. It contributed £32 billion to the UK economy in 2017. Companies were overseen by the Body for European Regulation of Electronic Communications (BEREC). Having now left the EU, companies have to form new relationships with new stakeholders within a UK regulatory authority. Additionally, the UK is free to change the laws that were originally introduced according to EU requirements.
Advertising Sector
The impact of Brexit on advertising is, thus far, minimal. The Advertising Association, a trade group that represents advertisers in the UK, has said that companies delivering advertising services in the European Economic Area (EEA) should check the legal, regulatory and administrative barriers they may face in each EEA country. Advertising agencies are likely to find it harder to deliver services to any EEA country without an established presence there and should check the criteria needed to establish themselves in those states.
Data Processing Sector
Although the UK has left the EU, they will not be excused from complying with data protection laws. The UK still needs to follow legislation on how they store and treat data. Instead, Britain leaving the EU means that they have lost the Mini One Stop Shop protections. The mechanism previously meant that businesses engaging in cross-border data processing only needed to interact with one supervisory body.
Intellectual Property Sector
Choosing the right location for your intellectual property (IP) can be one of the most important business decisions you make.
Film Industry Sector
The film industry is a huge contributor to the UK economy, with around 186,000 people in direct employment. It contributes at least £2.6bn in direct gross value and a further £3.5bn in indirect gross value. Both film and television constitute major UK exports, of at least £1.2bn per year.
Construction Services Sector
It is largely unknown how the construction sector will fare after Brexit, as the demands of the industry may not be met if it faces a severe skills shortage. With this kind of uncertainty, it’s not unexpected that nearly 66% of construction professionals are worried about the negative impact Brexit will have on the construction sector, and that 24% are actively preparing for falling market conditions.