Contractors gain parliamentary representation
Contractors will have a voice in parliament through the formation this week of a new All-Party Parliamentary Group for the Freelance Sector. Chaired by Conservative MP for Northampton South Brian Binley, the new group will receive administrative assistance from PCG. Binley says: “Freelancers play a vital role within our economy and often their efforts go largely unnoticed. I am hopeful that this group can bring together freelancers across all different industries with the common aim of improving the conditions they are faced with.”
PCG National Freelancers Day lecture panel finalised
Contractors will have the opportunity to quiz some of the UK’s leading political, media and business figures at the National Freelancers Day lecture in Stationers Hall, London on 23rd November. Joining keynote speaker, futurologist Dr James Bellini, and host Sue Lawley will be former journalist and MP Baroness Liddell of Coatdyke, Telegraph Media Group Head of Business Damian Reece, PCG MD John Brazier and founder of Enterprise Nation Emma Jones. A limited number of seats are still available; contractors keen to attend should contact PCG.
Steady recovery maintained for IT contracting sector
IT contractors have seen contract vacancies increase by 23.3% since the start of the year, but job availability remains at half pre-recession levels, according to the October 2010 Quarterly IT Salary Survey published by JobsAdsWatch.co.uk. Financial services and London and the south of England continue to dominate the sector: 81.5% of all contract vacancies advertised were based in the south, and 35.8% of all IT contract assignments were with financial services clients. Agencies dominate as the main method of finding IT contract work; 87.9% of all adverts in the quarter were published by them.
Taxation review could lead to soaring contractor tax bills, but IR35 could ‘die’
Contractors’ tax bills could rise dramatically under proposals put forward by the Mirrlees Review, although its recommendations would also remove the need for legislation like IR35. Commissioned by independent think-tank the Institute of Fiscal Studies, the review recommends “equal treatment of income derived from employment, self employment and running a small company.” It also suggests abolishing National Insurance Contributions (NIC) and replacing lost revenues with increases in income tax.
Headcount up or static in oil and gas sector, although confidence is faltering
Although still in positive territory for the third quarter running, the Oil and Gas UK’s quarterly business confidence index reveals that segments of the sector are less confident about future prospects. The good news for contractors is that 90% of contributors to the index say headcount has increased or remained static. The research was conducted before October’s licensing round, which granted 192 new licences to 83 exploration companies, a possible reason for the negative outlook expressed by some respondents.
No place for contractors in new government skills strategy
Contractors are unlikely to receive any support to improve their skills under the new government skills strategy, Skills for Sustainable Growth, announced this week by Business Secretary Vince Cable and Skills Minister John Hayes. Government funding will target apprenticeships and small to medium sized enterprises. Adult learners and businesses will be expected to contribute to training and skills development as Cable explains: “I want to see the development of a culture of learning with individuals and employers driving forward the skills system and contributing to the learning they receive.” More…
IT contractors to benefit indirectly from ongoing financial services recovery
IT contractors will indirectly benefit from the modest improvement in City of London job availability, as reported in October’s Morgan McKinley London Employment Monitor. The financial services sector is the greatest single UK consumer of IT contractor services, as confirmed in the recent JobsAdsWatch.co.uk IT Salary Survey. So, with new City job opportunities having increased 5% from September to October, and financial sector opportunities up by 10% year on year, there is likely to be a rise in IT contracting opportunities.
Strengthening economy and contractor demand signalled by latest statistics
A potentially strengthening economy and an upswing in contractor demand have been signalled by three new sets of labour market statistics:
- The Bank of Scotland Report on Jobs shows a five-month high in demand for contractors, and permanent placements increased for the first time in four months
- The Office of National Statistics published Labour Market Statistics from June to September, with unemployment down and the highest number of self-employed workers on record, at 4.03m
- The Chartered Institute of Personnel and Development/KPMG Labour Market Outlook for Autumn 2010 shows a net positive balance of +11, up from the previous quarter’s outlook of +2. It also shows that considerably more organisations are planning to take on workers than lay them off. IT shows an index of +71 and manufacturing +51, both demonstrating a surge in hiring.
Adding a note of caution, CIPD Chief Economic Adviser John Philpott warns that positive signals can be deceptive: “What remains to be seen is how much of this good news is merely a pre-festive season surge in private sector jobs or evidence of a sustained improvement that will continue to offset large scale public sector job cuts.”