Tech chiefs weigh in on possible UK exit from EU

Sage and Salesforce leaders claim the UK is better off in the union but urge reform

Top executives at tech giants Salesforce and Sage have insisted the UK is better off staying in the EU but urged that some of its "crazy" regulations ought to be reformed.

Sage's chief executive Stephen Kelly and Salesforce's EMEA chairman Steve Garnett weighed into the debate at the Salesforce World Tour event in London yesterday, during which they were quizzed on their views on Europe.

The UK's membership of the EU was a hot topic during the run-up to the election earlier this month, with many campaigning for an in-out referendum on the issue in the coming years.

When asked for his opinion on the UK's membership of the union, Salesforce's Garnett said the UK should stay, but that reforms are essential.

"My personal view, as opposed to Salesforce's view, is that we are part of the European community and we share a lot with them," he said in a media Q&A session. "Sure, do we want some better rules and regulations and not quite so much red tape? I can understand that from a business point of view but I would prefer to be in the EU as opposed to outside it."

Sage's Kelly agreed that EU regulations need to be shaken up for businesses across the continent.

"I would love to see the debate be about reform and cutting red tape and cutting crazy regulations," he said. "For a small business with five employees, if they go to six employees, it costs another £15,000 in health and safety charges - that's crazy. We've got to cut red tape and reform. That should be the debate and that will help businesses across Europe. That's the key aspect we would like to see - the real issues being debated rather than just those that are populist."

Garnett said that regardless of the outcome, the firm's commitment to EMEA remains strong.

"I think, whether we were in or out, the phenomenon we are seeing today and have been seeing for the last 10 or 15 years with Salesforce would supersede any sort of divide," he said. "We see our expansion in countries that are in the EU [and] outside the EU, so to some degree, I don't think it matters massively. But personally, my preference would be to stay."

Kelly added: "I am a champion of small and medium-sized businesses in the UK. The reality is that businesses like consistency and stability; we don't like uncertainty. So when you double-click into it, you've got to look at the specifics - if you are a florist up in York, does it really matter? Ninety per cent of business for most SMBs in within a 30-mile radius."