Defence and Security Update: Brexit
A month on from one of the most momentous decisions in modern British
history, we have a new Prime Minister in Theresa May, a new Foreign
Secretary in Boris Johnson, and a brand new presence on the world stage - as
a nation decidedly separate from the European Union.
Whilst this is a turbulent time for the UK, with deep political divides and a tumultuous financial
market, responses are greatly varied across industries. For those working within the defence and
security market, particularly those specialised in IT, Brexit presents a “change in circumstances, not
direction or intent”. 1
Evaluation and Evolution of UK Tech
From a tech and defence perspective, it comes as no great surprise that the aftermath of the
referendum necessitates a thorough evaluation of both public and private sector projects.
“There will be a period where all department heads, including CIOs, will be forced to take a second
look at projects they now have underway.”2
As a result, there may be a delay in the plans and budgets allocated for 2017. However, Russ Shaw,
Founder of Tech London Advocates fully expects that “…the sector will rebound to deal with this
new challenge and fight hard”. Indeed,
“The UK tech sector will not only withstand the immediate challenges of this referendum result,
but will continue to grow and thrive… technology is a sector that will only increase in importance,
and works without borders.”3
Transcending National Boundaries
For those operating within the UK technology sector, the two year transitional period following the
activation of Article 50 (which, at the time of writing has still not been put in place) allows for wide
opportunities for adaptation. With both the ‘Cyber Directive’ – more formally known as the NIS
Directive – and the GDPR set to come into full force by 2018, well within the 2 years, it is likely that,
at least for the immediate future, the UK will face a cyber landscape influenced substantially by EU
directives.
With at least 2 years for Information Security professionals to understand the practicalities that may
affect their day to day roles, “the more immediate defence and security implications are expected to
be limited.4” As Adrian Davis maintains:
1
Nick Newman, PA Defence Expert cited in Brexit – the reality. www.PAConsulting.com/our-thinking/brexit-
the-reality/
2
www.ComputerWeekly.com/news/450299153/Greater-focus-on-UK-tech-talent-essential-in-face-of-Brexit
3
Tudor Aw, KPMG UK www.ComputerWeekly.com/news/450299153/Greater-focus-on-UK-tech-talent-
essential-in-face-of-Brexit
4
Nick Newman, PA Defence.
“Information security is well recognised as an international concern that has motivated
levels of cooperation that already transcend national boundaries and politics… information
security professionals right across Europe will continue to work together.”5
Met and Overcome with New Opportunity
As the Security Institute Vice-President Alison Wakefield declared in a recent article,
“Whatever cyber security challenges lie ahead, they will be met and overcome by the application
of expertise and diligent efforts of experts.”6
For IT Contractors working within the defence and security space, “new circumstances always bring
new opportunities for freelancers.”7
With the potential for some “substantial volatility” within the government space, greater
engagement in government structures from the private sector is highly likely.
Good news for IT Contractors?
“Leaving the EU is a massive one off project that will impact on virtually every client organisation
in the UK. This is exactly the sort of project that contractors are best at.”8
The next few months will potentially see the proposed changes to the IR35 implementations
dropped completely. Under the proposed system, the public sector faces losing out on contractors
who may put their rates up or migrate to the private sector. In the wake of an EU exit, “a flexible
workforce will be key to ensuring the UK economy doesn’t suffer”9 and thus, these changes are likely
to be disregarded. With the statement made by our new Chancellor Philip Hammond on his intent to
completely “reset” UK fiscal policy, the continuation of IR35 changes seems highly unlikely.
Time will tell what further repercussions an exit from Europe may bring to the IT Defence & Security
sector, but for now, all looks solid. One thing is certain, leaving Europe is a truly massive task –
“Alongside the negotiation, there’ll be the mammoth task of unpicking the policy, regulatory and
legislative links to Europe and creating a new framework.”10
5
Adrian Davis, European Managing Director at Security Certification body (ISC)2 Cited in Brexit: Information
Security Professionals Not Too Concerned www.computerweekly.com/news/450299230/Bexit-Informationsecurity-professionals-not-too-concerned
6
Alison Wakefield, the Security Institute Vice President. Cited in Brexit: Information Security Professionals Not
Too Concerned www.computerweekly.com/news/450299230/Bexit-Information-security-professionals-nottoo-concerned
7
Chris Bryce, CEO of the Association of Independent Professionals and the Self-Employed (IPSE) in Contractors
Should Seize Brexit Opportunities, Urge Contracting Stakeholders
www.contractorcalculator.co.uk/contractors_should_seize_Brexit_Opportunities_526410
8
Dave Chaplin, ContractorCalculator CEO cited in Contractors Should Seize Brexit Opportunities, Urge
Contracting Stakeholders
www.contractorcalculator.co.uk/contractors_should_seize_Brexit_Opportunities_526410
9
Dave Chaplin, ContractorCalculator CEO.
10
Andrew Hooke, PA Government Expert cited in Brexit – the reality. www.PAConsulting.com/our-
thinking/brexit-the-reality/