Nova Contracting Director Marcus Green comments: “The Chancellor has missed a real opportunity to demonstrate that the Government understands modern working patterns and recognises the vital role of temporary workforce to the UK economy.
“There are 1.7 million contractors working in the UK and they’ve had more than their fair share of new regulations, changes and consultations on yet further proposed changes in the past couple of years.
“Now they face a further period of uncertainty as yet another consultation has been announced in a bid to investigate the means to achieve the same tax yields from incorporated businesses as through direct employment.
“For contractors working in the public sector, the expected changes to IR35 rules come into effect next April and the removal of their 5% allowance for general business running costs is a further blow.
“The Government has failed to recognise the major role of the contracting community in creating a ‘match-fit’ UK economy as well as the merit of new working practices, which are valued by both employer and temporary worker.”
