IR35 replacement could affect clients, but only benefit contractors in short term
Changes to IR35 could benefit contractors in the short term, but might cause long-term damage to the contracting sector if the UK returns to what Alan Rommel of Parity Resources says were the ‘bad old days’ of the nineties. That might happen if the UK’s IR35 replacement uses a similar ‘false self-employment’ regime to that in the USA and Canada, where clients pay the price of incorrectly classifying workers. According to Rommel, MD of the specialist recruiter, increasing the cost and complexity of hiring contractors could drive clients to increased offshoring: “Many clients will seek the flexible skills they need from outside the UK, potentially damaging the long-term viability of the sector.” More…
Insolvencies falling but ‘recession will have a long tail’
Contractors may wish to choose their clients carefully and undertake credit checks until at least 2013, as BDO’s Industry Watch highlights that business insolvencies will remain a ‘live issue’ for some time to come. BDO forecasts they will fall 18% from the record high in 2009, but plateau from 2011-2013. The long tail of the recession is blamed on falling consumer spending as BDO’s Head of Business Restructuring, Shay Bannon, explains: “The 2011 VAT rise and above target inflation will mean that the average UK household’s income will continue to decrease, meaning people have less cash in their pockets to spend on the nice-to-haves. This will hit the retail, personal services and leisure sectors the hardest.” More…
Index reveals renewed optimism in UK oil & gas sector
Confidence has soared in the oil & gas markets, according to the Oil & Gas UK Index, adding to the continuing good contracting news coming from that sector. Contractors expert in drilling, well services, marine and subsea engineering could benefit from the renewed optimism and investment in these sub-disciplines. Other contractors are likely to benefit too, as the Index reports rising confidence is also a feature in the facilities engineering, operations, maintenance and support services sector. However, exploration and production has bucked the trend, mainly driven by smaller independent players in the sector experiencing a large drop in confidence, possibly suggesting the sector is not fully recovered from the recession. More…
Accelerated growth forecast for financial services sector
The largest UK consumer of IT contractors, the financial services sector, is set to continue growing in the next three months and its profitability has improved for the fifth quarter in a row, according to the Confederation of British Industry/PricewaterhouseCoopers Financial services Survey. All but one of the major sectors grew in the past three months – the exception being general insurance. So overall, this is a positive sign for IT contractors that depend on a buoyant financial industry for work. More…
Good news for contractors as HSBC confirms it will stay in London
HSBC, the UK’s biggest bank, and a major IT contractor client, is reported by Reuters to have “no immediate plans to move the bank’s headquarters from London”. The announcement that there are no plans to move the HQ to Hong Kong was made amid a major shake-up of the bank’s board and the news will be a huge relief to London’s IT contractors depending on the banking giant for work. HSBC is a major ‘anchor’ in the City, and its departure would have hit the City’s reputation as one of the world’s financial capitals. More…
UK economic growth figures confirmed as fastest since 2001
Second quarter economic growth for the UK was confirmed at 1.2%, according to figures released by the Office of National Statistics. This was driven mainly by increased output by the construction sector and makes the second quarter the fastest period of growth since the first quarter of 2001. However, this period of growth coincided with the highest period of Government spending since 2008, benefitting contractors in the short term but suggesting that the economy is unlikely to match this level of performance once the results of the public sector spending review are known on 20th October. More…
Get involved in National Freelancers Day, urges PCG
PCG is urging contractors to get involved in activities in the run-up to National Freelancers Day, advertising ‘Six really easy (and three not so easy) ways you can benefit from National Freelancers Day.’ Contractors can read and submit tips for and from other contractors, complete industry surveys, point clients in the direction of online tools and more. For the more adventurous, PCG is organising Mastermind Sessions and holding an inaugural PCG Freelance Lecture on the day, 23rd November, facilitated by broadcaster Sue Lawley and featuring Dr James Bellini, a futurologist focusing on socio-economic trends up to 2025. More…