Contractor rates rise in Scotland as demand increases and skills shortages grow
Contractor demand in Scotland increased again during April 2014. Rates grew at a six-year high, with falling candidate availability continuing to drive skills shortages, according to the latest Bank of Scotland Report on Jobs. Despite the worsening skills shortages, Bank of Scotland chief economist Donald MacRae remains positive: “The Scottish labour market continued to improve in April. Demand for staff was strong but accompanied by a lack of available candidates. Salary inflation picked up in the month, partially reflecting demand for staff.” More...
Contractor prospects continue to improve as more clients are running at full capacity
The proportion of contractor clients running at full capacity rose to a third during April 2014, up from a quarter the previous month. This is according to the latest Recruitment and Employment Confederation (REC) JobsOutlook, suggesting that the contract market will continue to strengthen as contractors are hired to expand capacity in the short term. “The economic recovery is having a real impact on the jobs market, as these are the best results we have seen since this survey began in 2009,” says REC CEO Kevin Green. More...
IT, technology and engineering contractors can help address the UK’s skills gap
IT, technology and engineering contractors are ideally positioned to help address the UK skills gap that, according to a new report by PwC, threatens to dampen client organisations’ growth plans. PwC says two thirds of hirers “are concerned that they won’t be able to find the people with the skills needed to fill these positions”. It goes on to say that “technology and engineering firms report the most chronic shortage of skilled employees”. Flexible highly skilled knowledge workers such as IT and engineering contractors can help meet the short-term skills demands while firms search for longer-term, permanent talent solutions. More...
Contractors warned as two more tax avoidance schemes are defeated by HMRC
Contractors participating in, or considering joining, aggressive tax avoidance schemes have received a further warning shot across their bows as HMRC wins two more tribunal victories over scheme providers. The so called ‘Blue Box’ scheme and a second scheme based in the Channel Islands used charities to allow participants to claim tax reliefs. These victories for HMRC follow the defeat of the Icebreaker scheme in which Take That members participated, and demonstrate that some aggressive tax avoidance schemes are becoming increasingly risky. More...
Policymakers should use the local and euro elections to support contractors, says PCG
Policymakers should seize the opportunity presented by the local and euro elections to get behind the increasing number of contractors. This is according to PCG, which has highlighted how newly elected councillors and MEPs can support the UK’s and Europe’s contracting workforce. “By supporting self-employment locally, councillors will boost businesses in their constituencies just when they need it most,” says PCG director of policy and public affairs Simon McVicker. “Appointing an Envoy for Independent Professionals would ensure the fastest-growing sector of the European labour market is properly represented in Brussels.” More...
Contractors being “railroaded” into paying “unnecessary fines and penalties”
Contractors and other UK businesses are being “railroaded” into paying “unnecessary fines and penalties” by HMRC, says accountants UHY Hacker Young. The Daily Telegraph’s Szu Ping Chan writes that:“49% of the 17,200 automatic penalties issued by HMRC for the late filing of VAT returns in 2013 were overturned when taxpayers requested a review.” This suggests that contractors should request a review and stick to their guns when they believe a fine from HMRC is unwarranted. More...
Contractor brain drain of professional talent from the UK
Contractors with professional skills are choosing to leave the UK and work in countries such as the USA, Australia, India and South Africa. Recruiter reports that research by LinkedIn shows nearly 40,000 professionals left the UK between November 2012 and November 2013. Many of those professional skill sets affected fall into the core contracting disciplines, such as engineering. David Cohen, director of LinkedIn Talent Solutions for Northern Europe, highlights that: “[The] data indicates that the UK is an important hub for international talent in a number of industries, particularly the creative industries, management, engineering and HR.” More...
Oil and gas contractors in the well services sector receive boost to their prospects
Prospects for oil and gas contractors working in the well services sector are looking very positive following Oil & Gas UK’s latest report into the industry. Well services support 15,000 contracts and jobs across the UK and generate $3.2bn in revenues, an increase of 45% on 2010 despite declining exploration. Like much of the oil and gas industry, this subsector is suffering from skills shortages, which will present contractors with lucrative short-term opportunities. More...
Oil and gas contractors could find carbon capture is the future of the North Sea
Oil and gas contractors concerned about declining exploration and production in the North Sea could move into an alternative career in carbon capture and storage (CCS). According to BBC News’ Roger Harrabin, the House of Commons’ Energy and Climate Change Committee believes the depleted source rocks under the North Sea could be pumped full of unwanted CO2 from the UK and piped in from mainland Europe. The CO2 could also be used for enhanced oil recovery to extract more hydrocarbons. This industry could present a new opportunity for suitably skilled contractors. More...
Contractors are starting to feel the effects of political uncertainty, says the CBI
Contractors are beginning to feel the impact of political uncertainty around Scottish independence, the UK’s role in Europe and the 2015 general election. This is according to the Confederation of British Industry’s (CBI) President Sir Mike Rake in a speech at the CBI’s Annual Dinner. The uncertainty is resulting in major clients delaying investment decisions, which may result in fewer contracts. However, at least one of those uncertainties will be reduced from September 2014 following the Scottish referendum, which whatever the result should give firms the certainty to invest and generate more contracts. More...