PCG hits out at government’s ongoing attack on contractors
“The government is slowly strangling access to talent with red tape, while simultaneously proclaiming how crucial this entrepreneurial spirit is to growing the economy out of its debt crisis,” says PCG managing director John Brazier. Writing for ContractorCalculator, he criticises the coalition government for its ongoing attack on contractors and freelancers. Brazier points out that not only is the flexible workforce coming under further regulation, but also, in the case of limited company contractors, their “very mechanism of trading is being targeted”. More...
UK businesses "increasingly rely on contract staff"
The UK’s interim and temporary market “is performing relatively well”, with UK businesses increasingly relying on contract staff, according to the second Venn Index. Covering April to June 2012, the index notes that London is doing particularly well, showing 7.8% growth in recruitment activity. The public sector is recruiting many interims, with the NHS requiring financial and IT contractors to deal with its major reorganisation. In the private sector, financial services recruitment activity has grown by 6.9%, while recruitment of digital specialists around London’s ‘Silicon Roundabout’ is buoyant and expected to remain so. Another sector performing well is manufacturing, bringing a boost to the Midlands, and the North East. More... [PDF]
Contractors in manufacturing see sector fall to a three-year low
Contractors supporting the manufacturing sector experienced a gloomy July, with the latest Markit/CIPS UK Manufacturing Purchasing Managers Index (PMI) showing that manufacturing production fell at its fastest pace since 2009. There were substantial declines in output and new orders, which helped drive the PMI to a 38-month low. Contractors outside manufacturing may well be affected too, as Rob Dobson, Senior Economist at Markit, notes that “the sector remains a major drag on the overall economy”. David Noble, CEO of the Chartered Institute of Purchasing & Supply, added: “A slight increase in employment is the thinnest of silver linings for the sector, along with lower input prices and further growth in the consumer goods industry.”
SMEs, a major source of contracts, are feeling the pain of the double dip
Underlining just how tough a time many small and medium-sized enterprises are having through the double-dip recession, a new survey shows that 11% of the UK’s 4.5 million SMEs have considered closing down in the last three months. The figure in the North rises to 17%, while 12% in the South have considered closure. These results from Zurich’s SME risk index will be of concern to contractors, many of whom derive their private-sector contracts from SME clients. More...
Consumer technology firms likely to continue as a rich seam of contracts
If there were any doubts about consumer technology continuing to prove a rich seam for contractors to mine, Gartner has laid them to rest. The IT research consultant forecasts that consumers will spend $2.1 trillion worldwide on digital information and entertainment products and services in 2012, a $114 trillion increase on last year. And significantly, Gartner predicts that spending will grow faster in future than it has in the past, to reach $130 billion a year worldwide in 2016.The largest sectors, and potentially those offering the most contracts, are mobile services, mobile phones and entertainment services. More...
By 2020 UK will need to replace 2m engineers, scientists and technologists
A revitalisation of British industry could burn out, because the country is running out of engineers. That’s according to Graham Ruddick in The Daily Telegraph, reporting warnings from Sir John Parker, the president of the Royal Academy of Engineering. Parker says: “By 2020 there is a replacement need across all engineering, science and technology of something like 2m people.” While in the short term that might provide contractors with ongoing opportunities, in time it could force firms abroad to countries with more highly skilled workers. Parker argues that the UK needs a fully-fledged industrial blueprint to tackle the issue. More...
New research could set Europe’s policymakers straight on contracting
Obstacles to contracting across Europe are expected to be highlighted by new research being undertaken by employment law specialist Professor Patricia Leighton. She points out that the pan-European picture is complex: “What is accepted practice in the UK may be unusual or even illegal in other European states.” However, by undertaking the research, she expects to provide policymakers across Europe with the information they need both to better understand the contribution made by contracting, and to avoid damaging the sector. More...
North Sea oil and gas contracts rely on “the right decommissioning tax breaks”
While the North Sea is currently seen as a hot spot for overseas investors and private equity firms, HM Treasury will need to “set the the right decommissioning tax breaks” to compete with gas discoveries in East Africa and shale gas developments in North America. That’s the warning to the UK government from a number of oil and gas industry experts quoted in The Scotsman. “... we’re competing on a global stage for foreign investment,” noted Bob Ruddiman, head of energy at Pinsent Mason. He added: “The key for any investor is stability. That’s why the decommissioning tax relief is so critical.” More...
Lesson from PA Holdings case: contractors must keep on top of their paperwork
“[Limited company] contractors must ensure that they put a badge on all the money that comes out of their limited companies, clearly distinguishing expenses and salary from dividends.” That’s the advice of James Abbott of Abbott Moore, in response to the long-running PA Holdings case. While he acknowledges that the legislation the case is based on could in theory allow HMRC to reclassify contractors’ dividend payments as earnings, he feels this is unlikely. But the key lesson of the case for contractors is they must ensure their paperwork is in order. Abbott says: “Gone are the days of contractors making payments throughout the year and letting their accountant sort out the paperwork afterwards.” More...
Permies’ pay awards see little or no movement
Almost a fifth of permanent employees (19%) faced a pay freeze in the second of quarter of 2012, while the median pay award for those who did receive a rise was 2.5%. This is according to Incomes Data Services, which notes the continuing split between the private and public sectors: in the last quarter permies in the private sector saw pay awards just above inflation, but there was no movement in the public sector. More... [PDF]