Govt ''must act to cut red tape for contractors''

The government must do more than talk about helping contractors.

It is crucial that the government puts its statements on the importance of cutting red tape for contractors into action, a group has claimed.

Kevin Green, chief executive of the Recruitment and Employment Confederation (REC), has claimed that the coalition's rhetoric on reducing bureaucracy sounds great but is not a substitute for practical measures being made to achieve these goals.

A key step that the government will need to make is to ensure that the Agency Workers Regulations are actually workable.

He explained: "The reviews announced in relation to pensions reform, the vetting and barring scheme and IR35 are all welcome. However, it is the outcomes of these reviews that will really matter."

Mr Green said that it was especially reassuring for contractors that the government seems committed to fully consulting with the industry on employment-related changes.

Gerwyn Davies, public policy adviser at the Chartered Institute of Personnel and Development, recently questioned whether growth in the private sector would be enough to counterbalance job losses in the public sector.