Businesses in the UK have hit the pause button on more than £27bn worth of IT, digital and technology projects as they wait on the outcome of Brexit, according to new research from Beaming, the business internet service provider.
Beaming’s annual survey of business leaders, which was conducted by researchers at Opinium during the week in which MPs rejected Theresa May’s Brexit deal, indicates that almost a third (31%) of companies in the UK – some 1.7 million businesses nationwide - have put IT initiatives on hold due to Brexit uncertainty.
Around half (53%) of small and medium sized businesses in the UK and more than two thirds (77%) of larger organisations have put at least one IT project on hold pending the outcome of Brexit. Almost a third (29%) of micro businesses have also pressed the pause button on IT initiatives.
Technology companies were the most likely to have paused projects due to Brexit, with 81% of firms in the industry saying they had put investments on hold. Other sectors with significant numbers of paused projects include financial services (68%), education (64%), construction (60%) and manufacturing (57%).
Sonia Blizzard, managing director of Beaming, comments: “Regardless of the rights and wrongs of Brexit, it has become clear that the political stalemate in Westminster is creating uncertainty and affecting investment. Whatever happens, businesses need to communicate and ensure systems are resilient, and we are seeing spending to improve essentials such as connectivity and cyber security.”