Is the Autumn Statement Good News for Umbrella Companies?

Does the Chancellor’s Autumn Statement contain any good news for the UK’s freelancers, including contractors working through umbrella companies? Well, the answer seems to be both yes and no.

In a more bullish mood, George Osborne once talked of abolishing the Autumn Statement as superfluous, but PAYE umbrella contractors will not be alone in noticing that he has been driven into making one that virtually amounts to a second annual Budget. To be fair, the blame can’t be laid neatly on the Government’s doorstep – the threatening meltdown in the Eurozone has played a much bigger part in sucking us all toward the brink of another recession.

But does the Statement amount to ‘steady as she goes’ or are there some necessary modifications to the plan? Although Mr Osborne continued to talk the austerity talk (more spending would frighten the markets and lead to a surge in interest rates, etc.), he appeared to be walking – or at least tiptoeing – along a growth walk.

REC Chairman Kevin Green endorsed the Chancellor’s decision to streamline employment rules and give employers fiscal incentives to hire young people. He also applauded Mr Osborne’s green light for infrastructure projects by easing access to liquidity for UK companies. However, he also clearly feels that more should have been done, not least by implementing a national insurance break for SMEs prepared to hire young people.

He added “The Government needs to deliver in all of the areas announced today and must continue to respond quickly and positively to proposals from the UK recruitment industry for stabilising and boosting the jobs market.”

Source:

http://www.rec.uk.com/press/news/1876