Contractors hard hit by £6bn economic fallout of royal wedding bank holiday
Individual contractors may be out of pocket to the tune of hundreds or thousands of pounds this month as there are only 18 billable days for most workers. Not only that, but the extended breaks taken by many client decision-makers are also likely to have delayed contract award decisions. Despite claims that the additional spending on wedding-day tourism and memorabilia will benefit business, Bloomberg reports that the Federation of Small Businesses (FSB) has calculated the cost to the economy of the additional bank holiday to be £6bn. More…
IT contractors benefit from strengthening economy, but construction contractors see sharp downturn
IT contractors have benefitted from a strong surge in growth in the finance sector, whereas construction contractors experienced a sharp downturn in activity in the first quarter of 2011. According to the Office for National Statistics (ONS), the economy as a whole grew slightly by 0.5% of gross domestic product (GDP), returning to the same level as the third quarter of 2010. The shock fall in the fourth quarter of 2010 was caused by the abnormal weather, says the ONS. More…
Contractors in manufacturing sector set for sustained recovery
Contractors supporting clients in the manufacturing sector look set to experience ongoing recovery, says a new report from the Confederation of British Industry (CBI). The CBI April Quarterly Industrial Trends survey shows growth in domestic and export demand is at its fastest rates since April 1995. And further good news for contractors comes in the form of accelerated recruitment at rates not seen since January 1974. More…
Oil and gas contractors face prospect of losing billions of pounds of North Sea investment, as Chancellor refuses to budge on tax hike
Oil and gas contractors may lose out as contracts potentially worth billions of pounds are axed, according to a study just published by the University of Aberdeen. The Effects of Budget 2011 on Activity in the UK Continental Shelf by Professor Alexander Kemp and Linda Stephen predicts that investment and operating costs worth up to £82 billion will be lost in the next three decades because of the tax increase introduced in the 2011 Budget. And according to a report by Reuters, the Sunday Times has revealed that minutes from the meeting between Chancellor George Osborne and oil and gas industry representatives show the Chancellor is unlikely to reverse the decision. More…
Construction and engineering contractors under scrutiny from HMRC
Construction and engineering contractors in the plumbing and heating sector appear to have come under scrutiny from HMRC as its long awaited clampdown on the black economy in construction trades begins. An estimated 50,000 plumbers, gas fitters and heating engineers will receive letters from HMRC suggesting they take action to plug any gaps in their tax affairs. HMRC’s Director of Risk and Intelligence, Mike Wells, has a stark warning for contractors: “We do not think everyone who receives a letter owes us tax. However, if you owe tax and don't get a letter, do not assume that HMRC will not catch up with you.” More…
Marketing and interim management contractors suffer from economic uncertainty
Marketing and interim management contractors have seen marketing budgets slide again as economic uncertainty persists in the marketing and advertising sector. According to the latest Institute of Practitioners in Advertising (IPA)/BDO Bellwether Report, marketing budgets were actually revised down in the first quarter of 2011, making it the second quarter in succession that organisations have cut marketing budgets. However, forecasted market spends are set to increase as firms seek to take advantage of the economic recovery. More…
Contractors urged to protect their intellectual property assets
Contractors have been urged by the Intellectual Property Office (IPO) to protect their intellectual property assets, such as patents, copyrights, designs and trademarks. The message came as part of the IPO’s celebrations around World Intellectual Property Day on 26 April 2011. The IPO is keen to point out that protection can be relatively simple and inexpensive; for example, a design can be protected for as little as £60. Contractors can create fresh intellectual property on a daily basis and, whilst most contracts grant ownership of IP to the client, some contractors may be able to commercially exploit their ideas. More…