Monitoring and updating contracting skills vital to ensure ongoing contracts during turbulent times
Contractors must invest in developing their contracting skills during the current market uncertainty, with the markets for contracting disciplines performing at highly variable rates. This is according to ContractorCalculator CEO Dave Chaplin, who says: “We’re seeing oil and gas contractors experiencing a renaissance in demand that promises to extend well into the rest of the decade.” However, IT and engineering contractors have seen short-term falls in demand. “Contractors recognising this market volatility and rigorously applying their contracting skills to identify market hotspots are the ones who will stay in contract during 2012,” adds Chaplin. More…
Contractors defended from government-led demonisation by industry bodies
Following the recent government-led witch-hunt for limited company contractors providing services to the public sector, several of the UK’s contractor organisations have joined forces to run campaigns designed to put a stop to any further demonisation of contracting. PCG has launched a four-week press advertising campaign promoting its britainsbraingain.com website. And in a joint initiative, PCG, the Interim Management Association (IMA), the Institute of Interim Management (IIM) and the Interim Hub issued a statement calling on civil servants and the media to avoid a knee-jerk reaction.
IT and engineering contractors most in-demand, but AWR is starting to bite
IT and engineering contractors experienced high demand in February, in third and first place respectively in the latest KPMG/Recruitment and Employment Confederation (REC) Report on Jobs. However, whilst the demand for contract and temp workers continues to grow, albeit at a slower pace, billings have decreased for the third consecutive month. The report says this was “in part related to the effect of the Agency Worker Regulations”.
Agency Workers Regulations claims forecast to escalate, damaging contractor prospects
Although the anticipated multiple claims under the Agency Workers Regulations (AWR) have failed to materialise in the first few weeks since claims were possible, “more AWR claims are anticipated by the government, with an upward curve in expectation”. This is according to Craig Robb, speaking for HM Courts and Tribunals Service and the Department of Business Innovation and Skills, at an Association of Recruitment Consultants event. An increase in AWR claims could damage contractor prospects as clients choose to hire permanent employees or offshore roles altogether to remove the uncertainty. More…
60% stealth tax is leading to disguised employment growth: genuine contractors could suffer
ContractorCalculator has crunched the numbers to reveal that many employees start paying a 60% tax rate well before they hit the £150,000 earnings threshold. That’s fuelling a new boom in disguised employees, which is likely to lead to further anti-avoidance measures that will ultimately harm genuine contractors. “From the start of the 2010-2011 tax year, employees earning over £100,000 lost their personal allowance to the tune of £1 for every £2 earned over the £100,000 threshold,” explains ContractorCalculator CEO Dave Chaplin. “This results in a marginal tax rate of 60% between earnings of £100,001 and £114,950.” Chaplin fears potential anti-avoidance measures would drag genuine contractors into lengthy HMRC investigations that the taxman would eventually lose. More…
IT contractor prospects dampened by poor levels of financial sector hiring
Financial IT contractor prospects look unlikely to improve in the short term as hiring in London’s financial centre remains subdued. According to February’s Morgan McKinley London Employment Monitor, vacancies for financial workers increased by 8% from January, but were down by 47% compared to February 2011. Further improvements in hiring look uncertain as Morgan McKinley Financial Services Chief Operations Office Andrew Evans explains: “The prolonged period of fluctuating economic conditions means that confidence levels across the City could move in either direction.”
Contractors may escape a double-dip recession and see contract markets improve
Contractors may escape a double-dip recession and see the contract market gradually improve as economic growth increases momentum. These are the predictions of the latest British Chambers of Commerce (BCC) Economic Forecast. Although growth will be slower in 2012 than in 2011, BCC’s forecast predicts growth of 1.8% in 2013, when prospects for contractors will improve. BCC believes that a double-dip recession will be avoided, but that the Chancellor must “pull out the stops” to enable businesses to drive growth in the UK.
Construction and services contractors to benefit from ongoing growth
Contractors with services and construction clients will benefit from the continued growth in those sectors, particularly as services hiring has increased for the third consecutive month. The Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Construction and Services Purchasing Managers’ Index (PMI) both increased in February, signalling the continued expansion of these areas of the UK economy. All three of the construction categories – housing, commercial and civil engineering – registered growth in output, although hiring fell. Service sector confidence improved further in February, building on January’s record monthly gain to hit the highest for a year. More…
Positive news for energy contractors as the UK ranks in the top five global destinations for renewables
Energy and engineering contractors can still count on the UK renewable energy market as a long-term source of contracts. Ernst & Young’s Renewable energy country attractiveness indices (CAI) show that the UK has risen to fifth place in the rankings of most attractive renewable energy project destinations. Demand for contractors is likely to ramp up in 2015-2016 as wind farm growth is forecast to double then. China, the USA, Germany and India hold the top four positions in the rankings and could be attractive destinations for contractors seeking overseas contracts.