IT contractor numbers slashed at Lloyds Banking Group
Lloyds Banking Group has announced that it plans to cut over 1,000 UK-based IT contractor roles, and the Accord union is reported to have identified London, Edinburgh, Chester and Halifax as the key locations to be hit. The move, part of a three-year plan to rationalise operations following Lloyds’ acquisition of HBOS, will take until the end of 2011 to implement. According to Mark Fisher, Director of Group Operations at Lloyds Banking Group, IT contractors are being sacrificed to protect roles for permanent employees: “We have mitigated the impact on permanent staff with a significant release of temporary and contract staff.” More…
London’s financial centre maintains annual growth, fuelling contractor demand
Despite the above-mentioned announcement by Lloyds Banking Group, London’s financial services sector, which is the largest consumer of UK IT contractors, a new report indicates there may be increased demand for contractors. Morgan McKinley’s London Employment Monitor says there were 15% fewer available jobs in September compared to August, but vacancies have increased 23% compared to the same period in 2009. This has fuelled demand for IT and other contractors supporting City firms. Despite setbacks such as the news from Lloyds, contractors will also benefit indirectly from the strong confidence in the sector, as workers have high expectations as the City enters its ‘bonus season’. More…
Online demand for workers in key contracting sectors continues to rise
The Monster Employment Index for September shows a monthly increase of 1%, with continued uplift in online demand for workers in the core contracting disciplines of IT, telecoms, construction, marketing, management and research and development. “The gradual economic recovery continues, as indicated by the latest Index results,” says Monster UK & Ireland MD Julian Aquari, who adds that the long-term trend has improved substantially over the last twelve months. More…
Increased use of contractors could help avoid double-dip recession, says PwC
The contracting sector will play a major role in maintaining employment and avoiding a double-dip recession after the public sector spending review, according to a survey by PricewaterhouseCoopers Research. Although the report forecasts half a million private sector job losses as a result of public sector spending cuts, it says that outsourcing opportunities have the potential to forestall a double-dip recession. PwC’s head of public sector Jon Stibson explains: “Organisations with flexible supplies of labour, such as manpower service providers, will have new opportunities in future.” More…
Improved credit conditions may benefit infrastructure contractors
Although capital expenditure will increase, cost control dominates the decision making of Chief Financial Officers (CFOs) according to the Deloitte CFO Survey 2010 Q3 results. Those surveyed represent some of the UK’s major contractor clients, indicating that although hiring and discretionary spend will be tight in 2011, large UK corporates are gaining easier access to finance. This enables capital spending on the types of infrastructure projects that will benefit IT and engineering contractors, as well as those contractors working in related areas supporting capital intensive projects. More…
‘New recession can be avoided’ saving thousands of contracts
The contract landscape is looking uncertain, but many contractor assignments could be saved if research by the British Chambers of Commerce (BCC) is correct. Despite growth slowing, it is still positive across the UK economy, with the manufacturing sector showing the highest confidence levels since 2007, points out BCC. The slowdown is worrying, but a double-dip recession is not inevitable, as BCC Chief Economist David Kern explains: “It is important not to overstate the gloom. Growth remains in positive territory, and a new recession can be avoided.” More…
Consumer confidence fall could impact on multiple contractor sectors
UK consumer confidence has slumped, driven by uncertainly caused by the forthcoming public sector spending review, according to the Nationwide Consumer Confidence Index. This is particularly worrying for contractors servicing consumer-spending driven sectors. “The debate about public sector spending cuts has been heavily featured in the news over this period,” explains Nationwide Chief Economist Martin Gahbauer, “and we have seen expectations reigned in for both the future economic and employment situation, which has helped to force this index down.” More…
Contractor property portfolios losing value due to consumer gloom
Contractors with property portfolios, or those seeking to buy or sell a property, will struggle to generate buyers’ interest with house prices showing a monthly fall of 3.6% in September driven by falling consumer confidence. But according to the research behind these figures, the Halifax House Price Index, the cost of servicing mortgage debt is at a 25-year low at 30% of disposable earnings, meaning consumers should have more disposable income. Halifax housing economist Martin Ellis explains: “We expect interest rates to remain very low for some time, which will underpin the improved affordability position for homeowners.” More…
Contractors warned, as HMRC errors showing false tax rebates are uncovered
According to a report in the Daily Telegraph, taxpayers using HMRC’s online self-assessment system are being falsely told that they are owed sums of up to £24,000. Accountant Blick Rothenberg spotted the error when checking the accounts of a client after HMRC’s online system ‘went down’ earlier in the week. Contractors affected are being warned not to assume that rebate notifications are correct, and to check with their accountants. More…
Growth in new business launches fuelled by contractors
Research from Royal Mail shows a 13% rise in new business launches in the last six months, with the figures entering positive territory for the first time in 18 months. New contractor limited companies are likely to account for some of this increase, although the hotspots of activity in Sunderland, Rotherham, Stockton and Swansea are not traditional contractor heartlands. Aberdeen, however, tops the Scottish league of business start-ups, suggesting the improved fortunes of the offshore, oil & gas and renewables sectors there are having a positive impact on contractor fortunes. More…
State aid for contractor start-ups under New Enterprise Allowance scheme
Potential contractors currently out of work but considering making the leap into contracting could benefit from a new scheme. The Secretary of State for Work and Pensions, Iain Duncan Smith, has announced a new scheme that will provide budding entrepreneurs entering self-employment after being on benefits with funding of up to £2,000 towards start-up costs for their new businesses, plus a low-cost loan over the first six months in business in lieu of benefits. More…