Contracting experts make their predictions for 2016
Contractor prospects look promising coming into 2016, with sustained growth in several core contracting sectors and opportunities arising from Government projects set to drive demand for contingent staff. These are the predictions of a selection of contracting experts in ContractorCalculator’s annual forecast. Whilst numerous tax measures are due to come into force in April 2016 – including dividend tax and restrictions on travel and subsistence for umbrella contractors – they are expected to do little to deter contractors from continuing to operate as they do. Read the article in full, here: More...
Contractors force Parliamentary debate over quarterly tax returns with petition
Contractors, as well as other self-employed workers and small businesses, have forced through a Parliament debate over Government proposals to introduce quarterly tax returns with a 100,000-strong online petition, the Telegraph reports. Following the announcement in the Autumn Statement 2015, several contracting stakeholders have come out in opposition to the proposals, claiming it will prove overly-burdensome and costly for contractors. HMRC has since responded, insisting that the requirements will not be equivalent to that of submitting four tax returns a year. However, due to the number of signatures, Parliament is obliged to consider the matter for debate. More...
Contractor demand sees marked increase in 2015
Contractor demand is benefitting from a sustained long-term growth trend, as figures from the Association of Professional Staffing Companies (APSCo) show, revealing that contractor agency billings saw an annual increase of 9% in 2015. The finance sector performed particularly well throughout 2015, with statistics showing a 51.2% increase in contractor demand over the course of the year. “The UK’s reliance on the flexible workforce shows no sign of abating and it is clear that UK economic growth and global competitiveness depends on the continued flexibility of its labour market,” highlights APSCo chief executive Ann Swain. More...
Contractors benefit from growth across core UK economic sectors
Contractors ended 2015 on a generally positive note, according to the Purchasing Managers’ Indexes (PMIs) for December 2015 from Markit and the Chartered Institute of Purchasing and Supply (CIPS). Both production and contractor demand continued to rise in the manufacturing sector, whilst the construction sector saw a robust increase in business activity, to prove that November’s blip was just an anomaly. Meanwhile, contractors in the services sector benefitted from a sharp upswing in terms of new business. This month’s PMIs highlight:
- The UK manufacturing sector continued its 33-month growth trend in December, but at a markedly slower pace than the peak reached in October, resulting in “a muted end to the year”. Nonetheless, the latest UK Manufacturing PMI shows that the continued increase in output was enough for firms to increase contingent staffing levels at a similarly modest level.
- The UK Construction PMI shows the construction sector had a far stronger end to the year, with business activity expanding at an accelerated rate. Commercial construction proved to be “the main engine of growth”, with demand for commercial projects itself boosted by improving economic conditions, noted by respondents. As a result, contractor hiring and employment growth rebounded from November’s 26-month low, with sub-contractor usage rising at its fastest pace since August 2014.
- “The services sector remained the key driver of the UK’s economic upturn in December.” Staffing levels in the sector continued to increase at a robust pace, extending the sequence of growth to three years. The UK Services PMI attributes this largely to a sharp rise in new business boosting overall activity. As a result, the volume of outstanding business increased at the sharpest rate since August.
Contractors buoyed by increase in oil and gas activity
Oil and gas contractors short of work in the UK Continental Shelf (UKCS) may take heart from recent statistics suggesting that production in the sector rose by more than 7% in 2015. Oil & Gas UK cites Government data which shows that oil and gas production the first 10 months of 2015 was up by 8.6% compared with 2014, concluding the year end production to be at least 7% higher. This would break a streak of declining production which has been ongoing since the turn of the millennium, and may help to reverse the decline in investment in the struggling sector. More...
Contracting organisation closes in support of PRISM
Contracting trade body the Association of Employment Management Companies (AEMC) has announced it will shut down in order to lend support to fellow trade organisation PRISM, the Global Recruiter reports. AEMC director Colin Howell notes that now is the time to entrust PRISM with the role of lobbying Government in contractors’ interests: “It has been doing a fantastic job of providing the industry with a powerful voice in Westminster during what are uncertain times.” AEMC’s decision was welcomed by PRISM CEO Crawford Temple: “I hope AEMC’s decision to close will focus attention on PRISM and help drive forward the powerful advocacy we are striving to achieve for our members.” More...
NHS contractor use defended by ARC chairman
The use of contractors within the NHS has been defended in a radio debate, following suggestions that the NHS should simply employ all its healthcare workers. Speaking on the Jeremy Vine show, Chairman of the Association of Recruitment Consultancies (ARC) Adrian Marlowe highlighted current NHS skills shortages as proof that contractors are vital to the functionality of the sector: “At a time when it is well known that there are staff shortages in many sectors it is important that the NHS has access to the resources necessary to meet its short term and emergency demands.” More...
IT contractors see significant international demand
IT contractors in search of overseas opportunities can expect increasing demand for their services in Europe. Computer Weekly reports that the increasing digitisation of the economy has seen a substantial upswing in the number of available roles in Germany and the Netherlands, with software development expertise being particularly sought after. Germany currently has more than 43,000 vacancies, whilst the Netherlands has in excess of 15,000. Research from digital association Bitkom shows that almost 60% of German companies have a shortage of IT talent, with 64% seeking software developers. “Every unfilled vacancy means a loss of value creation and innovation,” notes Bitkom president Thorsten Dirks. More...