Concerns over affect of immigration cap

The REC is concerned that the government’s proposed immigration cap will lead to a greater skills shortage in certain sectors. However, this has annoyed some contractors who feel threatened by cheap labour from outside the EU.

The REC responds positively to Tuesday’s budget

Contractors could be better off as a result of George Osborne’s announcement that the income tax threshold will change. The REC said that temporary agency workers who only work for short periods will be especially delighted with the budget announcement.

Public sector contracts unlikely to dry up immediately

Umbrella company contractors working in the public sector can take comfort from recent comments made by Sir Peter Gershon. Gershon has already published a review into public sector efficiency in the UK and he was a special adviser to the Tories during the run up to the recent election.