DCMS Select Comittee reports on Brexit Implications for the Digital Single Market

The Culture, Media and Sport Select Committee has published its report into the Potential impact of Brexit on the creative industries, tourism and the digital single market. The report was produced in response to an inquiry launched in the Autumn of 2016 to examine priority issues for Government in its negotiations as it exits the EU. Particular attention was given to workforce, funding and the future regulatory environment issues.

The Committee “found little appetite amongst witnesses to surrender the benefits of a uniform and open European marketplace and regulatory system in favour of domestic regulatory changes that may not be consistent with the rest of the EU???. The report also recognises that given the UK’s status as having the most developed digital technology sector in the EU, it stands to reason that having benefitted greatly from the development of the digital single market, it also has “potentially the most to lose in the future, should we not negotiate mutually beneficial arrangements following Brexit???.

Whilst a minority of those giving evidence thought that there might be an opportunity to more closely tailor the UK’s regulatory system to the UK’s needs, the overwhelming majority feared the harmful effects of leaving the Single Market and Customs Union as well as losing “the benefits of a uniform and open European marketplace and regulatory system???.

From the perspective of the future labour market, there is a clear risk that a skills gap might emerge and the burden of additionally bureaucracy foisted upon business regarding potential visa requirements for EU workers.

The report also recognized that although London might be able to withstand the movement of creative businesses and workers in a post-Brexit UK, smaller cities and businesses alike were more vulnerable to movement.

Chair of the DCMS Committee Damian Collins MP, summarized the findings: “The Government should set out as a matter of urgency those areas where it believes that Brexit offers an opportunity for beneficial regulatory reforms, and how it intends to capitalise on any such opportunities. It should also set out where it believes that maintaining equivalence would be the most favourable outcome, for the industries and consumers alike.???

The Report’s findings align closely with the findings of the BSG report on the Implications of Brexit for the Digital Communications Secto