Contract vacancies increase led by technology, engineering and science
Contract vacancies grew 10% in the first quarter of 2014, compared with the final quarter of 2013. This is according to the latest Reed Job Index for March 2014. Reed.co.uk chairman James Reed highlights that: “It will be key growth sectors, requiring specialist skills, such as technology, engineering, and science, which offer the greatest opportunity.” As these are all core contracting disciplines, this suggests the prospects for contractors are positive. More...
Contracting sector grows as a result of the ongoing strengthening of the economy
The contracting sector continues to gain as a result of the UK’s ongoing economic recovery and growth. All three closely watched Purchasing Managers’ Indices (PMIs) published by Markit/the Chartered Institute of Purchasing and Supply (CIPS) were firmly in growth territory during March 2014, although the rate slowed in the manufacturing and service sector:
- UK Manufacturing PMI: the ongoing growth, although cooling slightly compared to previous months, still managed to support further contract and job creation. More...
- UK Construction PMI: this declared that “construction firms report brightest outlook for business activity since January 2007”, continuing an unbroken 11-month growth cycle and contributing to a “sharp increase” in new contracts and jobs. More...
- UK Services PMI: Although growth slowed, it remained “marked” with the launch of new products and services supporting activity. Contracts and jobs increased for the fifteenth month in a row. More...
IT contractor prospects buoyed by financial clients “scrambling” for new staff
Financial IT contractor prospects are looking very positive, according to the latest Confederation of British Industry (CBI) and PricewaterhouseCoopers (PwC) Financial Services Survey. CBI director for competitive markets Matthew Fell says: “Businesses plan to spend heavily on IT and are scrambling to find new professional staff to meet growth demands.” The survey also confirms that more than half of the financial firms surveyed plan to increase IT spend. More...
Oil and gas contractors to benefit from North Sea exploration initiative
Oil and gas contractors will benefit from a new Oil & Gas UK initiative to stimulate more exploration in the North Sea. The industry body has commissioned SLR Consulting to complete the first phase. Oonagh Werngren, Oil & Gas UK’s operations director, explains: “The aim of the 21st Century Exploration Road Map is to contribute to improving exploration success and address the 50% decrease in the number of wells drilled.” More...
“More contracts and better rates” for contractors, says PCG
Contractors look set to enjoy “more contracts and better rates” over the short-term, says PCG economist Georgios Nikolaidis in a new report published by PCG. However, Nikolaidis warns that the Chancellor George Osborne needs “cautious consideration” to ensure long-term success. “In a bid to address the UK’s most fundamental challenges, low business investment and low exports, [the Chancellor] has announced a range of tax incentives that could potentially contradict his fiscal consolidation programme,” adds Nikolaidis. More...
Contractor clients to release a £200bn cash pile over next 24 months
Contractor clients that have been sitting on huge cash piles during the uncertainties of the recession will spend up to £200bn over the next two years, according to research by Deloitte. The cash will fund investment and new projects that will translate into contracts and jobs. Although some of this investment will be in international markets, particularly across Asia-Pacific, David Sproul, chief executive of Deloitte UK highlights that firms see the UK both offers potential as a market in its own right and as a launch-pad: “Companies see growth potential in the UK too and recognise the benefits of using the UK as a hub for controlling their expanding international businesses.” More...
Contractors to suffer ongoing late payments, as PCG criticises government climb-down
Contractors are likely to suffer ongoing issues over late payments by clients, as the government refuses to legislate for change. PCG has voiced its disappointment over the move, and CEO Chris Bryce confirmed contractors lack faith in the current system: “Our own research tells us that the majority of freelancers think the code is ineffective. In order to change the culture of late payment in business, the code must be compulsory and include some form of sanction for the worst offenders.” More...
Contractor eligibility for the Employment Allowance confirmed by HMRC
The vast majority of limited company contractors will be eligible for the new Employment Allowance, which provides a £2,000 contribution to employers’ National Insurance contributions, according to guidance confirmed by HMRC following the 2014 Budget. As a result, some contractors with no income apart from salary and dividends could benefit by up to £164 per year. However, the guidance also says that contractors operating IR35 and making deemed payments are unable to claim the allowance. More...