Draft Finance Bill reveals no nasty surprises for contractors in 2012 Budget
Contractors look set to emerge relatively unscathed from the 2012 Budget, according to the draft Finance Bill. The Treasury has published most of the measures to be announced on 21 March 2012 in advance. The personal allowance is increasing and the ESC C16 rules for taking capital out of closing contracting businesses are in line to be changed. However, the basic rate threshold is decreasing, which may tip some contractors into the higher rate tax band for the first time. More…
Contractor demand increase continues
Contractor demand continued to increase in November, albeit at a slower pace, driven partly by clients choosing to hire flexible workers and defer permanent recruitment decisions. According to the KPMG/Recruitment and Employment Confederation Report on Jobs, economic uncertainty is causing clients to hire contractors to cope with workloads, rather than employees. Permanent staff appointments have decreased for the second month running, although demand for construction, engineering and IT workers has remained strong. More…
Financial IT contractors facing tougher market
Financial IT contractors are facing an increasingly tough market, as the Morgan McKinley London Employment Monitor for November reveals another month of plummeting demand. There were 29% fewer job opportunities in London’s financial sector in November compared to the previous month, and 42% fewer compared to November 2010. Falling headcounts in the City will have a knock-on effect on IT contractor prospects as the financial sector is one of the largest consumers of UK-based IT contractors. However, in some areas, the reduction of employees might create short-term opportunities for some contractors.
Online demand for workers in the UK static: Germany, Italy and Sweden see growth
Online demand for workers in the UK remained static in November, although Germany, Italy and Sweden all experienced modest growth. This is according to the European Monster Employment Index for November, which also reports that engineers are the most sought after workers across the continent. Contractors considering contracts abroad are less likely to find success in Belgium, France and the Netherlands in the short term, as online demand for workers fell in each territory during November. More…
Contractors in the construction and services sector to benefit from ongoing growth
Contractors with clients in construction and services will benefit from the continued growth and rise in new business reported in the sectors. The Markit/Chartered Institute of Purchasing and Supply (CIPS) UK Construction and Services Purchasing Managers’ Index (PMI) for November showed increasing output in both sectors, notably in house-building and commercial construction activity. Hiring in the construction sector grew at its fastest rate in over three-and-a-half years. In the services sector, optimism about the forthcoming London 2012 Olympic and Paralympic games has been tempered by concerns over the eurozone crisis.
Contractor demand in manufacturing likely to fall
Demand for contractors by manufacturing clients is likely to fall following slowing output in the sector. Growth is still in positive territory, according to the Engineering Employers Federation (EEF)/BDO Quarter 4 Manufacturing Outlook Survey, but economic uncertainty is leading to “an easing in investment and recruitment intentions”. The survey also highlights that the eurozone crisis is negatively impacting on UK manufacturers, as Europe remains the UK’s biggest export market.
“Small crumb of optimism” for contractors: KPMG Business Outlook Survey
The latest KPMG Business Outlook Survey offers contractors a “small crumb of optimism”, indicating that the UK’s manufacturing and services sectors still retain “some level of confidence”. A third of respondents in both sectors are predicting increased new orders and new business between now and winter 2012. Job creation sentiments are also positive, which is good news for contractors, but the rate of job creation predicted is at its lowest rate since June 2010. More…
Contractors to wait until 2013 for UK to emerge from ‘depression’
Contractors will have to wait until 2013 to enjoy the same level of peak economic activity experienced in 2008, according to forecasts by thinktank the National Institute of Economic and Social Research (NIESR). In its latest estimates of monthly GDP, the NIESR says that the recession is over but the UK will continue in a sustained period of depression “for some time”. According to NIESR’s definition, a depression is “a period when output is depressed below its previous peak”.