Spending Review offers contracting sector some positive news
The massive cuts in public sector spending and employment are likely to have some positive impact on the contracting sector. That’s because not only may the estimated 490,000 public sector job losses provide contract opportunities for the maintenance of front-line services delivery, but spending has also been ‘maintained’ on key infrastructure, energy and defence projects. However, life may become more uncomfortable for some contractors due to the proposed banking levy (see below) and HMRC’s £900m war chest, some of which might be used to tackle contractors and their service suppliers. More…
IT contractors face uncertainty over proposed bank levy
Following the announcement in the June Budget and October Spending Review of a new tax on UK banks, the Treasury has finally unveiled the proposed legislation for the so-called ‘bank levy’. The UK financial services sector is the largest single consumer of IT contractors, so any threat to the sector could impact directly on contractors. The levy is forecast to generate around £2.5bn annually, on an ongoing basis. More…
Agency Workers Regulations to be applied to contracting sector without changes
The Agency Workers Regulations (AWR) must be adopted unchanged, without amendments that could stop contractors being adversely affected, according to the Minister for Employment Relations, Ed Davey. The threat of a potential legal challenge from the Trades Union Council (TUC) and the Confederation of British Industry (CBI) prevents the Coalition government making amendments to the legislation before it comes into force in October 2011, unless any changes are approved by both the CBI and the TUC. More…
Drastic cuts to contractors’ pension contribution tax relief allowances
In a move that will increase the tax burden on contractors prudently saving for their future, the Treasury has announced plans to cut the annual tax-free pensions contributions limit from £255,000 to £50,000, and the lifetime allowance from £1.8m to £1.5m. This is expected to hit an estimated 500,000 taxpayers with additional tax bills, including limited company and umbrella company contractors investing in private pensions. More…
Survey says flexible workforce protected UK PLC from deeper recession
Contractors and other flexible workers have enabled UK PLC to emerge from the economic downturn better prepared compared to other economies around the world, allowing private sector clients to start planning for growth. That’s the verdict of the latest Confederation of British Industry (CBI)/Harvey Nash Employment Trends Survey. “Comparing the UK’s labour market with others around the world, it is its flexibility and agility that has protected the country from the very worst possible outcomes during the recession,” explains Harvey Nash CEO Albert Ellis. “[The flexible workforce] has also provided a robust platform for an increase in demand for recruitment.” More…
Demand for contractors in Scotland remains robust
Despite a weakening market for permanent employees, demand for contractors in Scotland remains healthy, according to this month’s Bank of Scotland Report on Jobs. The report shows that, against a backdrop of a deteriorating labour market, demand for temporary workers remained positive, rising at the fastest rate for three months. A surge in temporary candidate availability in Aberdeen could be in anticipation of an expected renaissance in the offshore oil & gas sector, although rates have fallen for the second month. More…
PCG launches new National Freelance Survey to give contractors a ‘voice’
PCG has opened a new National Freelance Survey, the results of which will be timed to coincide with this year’s National Freelancers Day on 23rd November. Research firm ComRes will lead the research and contact PCG’s 20,000-strong membership and 500 businesses, including contractor clients, to find out more about the UK’s flexible workforce, its features and the benefits it brings to client organisations. Contractors are invited to participate by visiting the National Freelancers Day website. More…
Outlook for interim marketing contractors slightly improved
Marketing budgets in the third quarter of 2010 increased slightly, according to the latest Institute of Practitioners in Advertising (IPA)/BDO Bellweather survey, representing a slight improvement in prospects for interim media and marketing contractors. Online and direct marketing spend was strong in the period, but spend fell on all other marketing activities, including PR and events that depend heavily on freelance and contract marketing and public relations professionals. More…