Contractors will benefit from new laws proposed in the Queen’s Speech
This week’s Queen’s speech has set out the legislative timetable for the next session of parliament and contains a series of measures that could directly, and indirectly, benefit contractors. The plans to create a fairer tax system will benefit limited company and umbrella contractors and may pave the way for the promised review and potential replacement of IR35. However, measures to scrap major public-sector schemes, like identity cards and new runways, will cut opportunities for IT and engineering contractors. More…
IT contractors’ job prospects improve, with IT investment “bouncing back”
The number of IT contractors out of contract for three months or more has fallen by 33% in the first quarter of 2010, according to research conducted by contractor services provider giant group plc. According to the research, six months ago 10.1% of IT contractors had been out of work for three or more months, compared to just 6.8% three months later. Matthew Brown, giant MD, cites increased business investment as a driver for the upturn: “This is a very dramatic drop in long-term joblessness among IT contractors. It shows just how deeply IT departments cut back on personnel during the recession and how strongly investment in IT is bouncing back.” More…
REC throws down the gauntlet over AWR…
The Recruitment and Employment Confederation (REC) is planning to tackle new ministers over pre-election hints that the Agency Workers Regulations may be reviewed prior to implementation in October 2011, a move that could benefit contractors. An immediate step will be to directly engage with the relevant ministers, as REC’s Head of Policy Anne Fairweather explains: “The REC will be making immediate representations to ensure that the industry’s concerns are taken on board and that the vital role of agency work is well understood. The current economic climate makes it more important than ever to implement the regulations in a way that protects the flexibility of the UK labour market.” More…
…and warns the new coalition over public sector IT cuts
REC is maintaining its pressure on the new administration with a stark warning to the Chancellor, following the announcement that £95m is to be saved from reduced IT spending. Much of the resultant ‘pain’ would, of course, be shouldered by IT contractors. Jeff Brooks, Chair of Technology at REC, says: “We would advise the new Government not to sever critical IT investment projects indiscriminately. IT can help the government and public services to function more efficiently, but if we start randomly dropping IT projects now, that could act to add costs rather than eliminate them in the long run.” More…
83% of employers believe the UK’s flexible labour market saved jobs
Contractors have been recognised for playing their part in cushioning the impact of the downturn as, according to the latest CBI/Harvey Nash employment trends survey 2010 of firms that between them employ 3m people, 83% of employers surveyed believe the UK’s flexible workforce saved jobs. Also, only 5% of those firms still have a recruitment freeze, compared to 37% six months ago. “We are seeing the first indications in the market that businesses are gearing up for a return to growth and this trend is most concentrated in the technology, financial services sectors and some areas of manufacturing,” explains Harvey Nash CEO Albert Ellis. More…
Vacancies and rates on the up for contractors in Scotland
Despite the lower performance of the Scottish labour market compared to the UK as a whole, vacancies and rates were both up for contractors, according to the Bank of Scotland Report on Jobs. Contractors in most demand were first IT and second engineering. Demand for IT contractors was the fastest across all contractor and temporary workers compared to the previous month. More…
First quarter economic growth revised upwards
Contractors across all disciplines will continue to benefit from a healthier economy. So the news from the Office of National Statistics that GDP grew faster than thought between January and March 2010 should help increase business confidence levels, which will in turn increase demand for contractors. Although the revision was small, 0.3% up from 0.2%, the increase was driven by rises in business services and industrial output, both sectors that hire contractors. More…