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Home Page > Finance > Mortgage > Future Looking Bright For Both UK And IT Contractors
Future Looking Bright For Both UK And IT Contractors
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Future Looking Bright For Both UK And IT Contractors
By: John MichelCane
About the Author
IT Contractor – Umbrella company is a one-stop shop for IT contractors with news and advice e.g. on IR35 and the IT Contract market. We have Umbrella Companies, IT Accountant,IT Contracts, Pensions and Insurance and a Limited Company Set-up facility.
(ArticlesBase SC #3158394)
Article Source: http://www.articlesbase.com/ – Future Looking Bright For Both UK And IT Contractors
Not So Bad
IT Contractors have not been nearly so badly hit in this downturn as in previous downturns. In the main companies are seeing IT as core to what they do rather than as a non-core process and see them now as an enabler of both growth and cost cutting rather than as a cost in itself which should be chopped when a downturn comes. Even when they wanted to cut costs they cut IT Contractors rates rather than get rid of them altogether.
Those rate cuts are now getting reversed as the economy recovers.
Sea Change
This sea change in perceptions by companies means that IT Contractors now inhabit a much safer profession and will not have long periods on the bench spending the money they built up during the good times. The first phase of the current economic activity started with companies hiring more contractors. They always do that early on in a recovery as they don’t want to take on premise while the recovery is not certain. Now, we are in the phase, according to what agencies are telling us, where the emphasis has moved to the premise and they are the ones who are doing best.
Not a Problem
This is not a problem for IT Contractors as the more permies that get back to work the better. IT Contractors do best when there is a shortage of permies to fill roles.
Looking Good
As far as the UK economy is concerned it is looking good. Before the last election Labour was saying that the best way to cut the budget deficit was to strengthen the economy so that higher tax payments would cut the amount we need to borrow. The Conservatives were saying we needed to cut as soon as we can so that we didn’t have a run on sterling and end up like Greece. The danger with the Conservatives policies was that they would stunt economic growth and cut tax receipts. Indeed after their emergency budget recently with the cuts the Treasury cut their growth predictions from 2.1% for this year to 1.6%.
Labour wanted to wait till the economic recovery is more secure before making the necessary cuts.
New Figures
Figures announced yesterday showed corporation tax receipts rising by the biggest amount since the 1980s. Net borrowing in July fell to £3.8bn from £6.1bn. That’s fantastic news. Corporation tax rose an astonishing 38% to £8.5bn. That’s not just a fluke as July is one of the biggest months for Corporation Tax receipts.
Better News
It means that the budget deficit is not going to be anywhere near what the Government expected. It also means that if the Coalition made cuts now it would be at a time when the private sector is able to take up the slack of growing the economy and creating employment. Of course, growth will be slower than it would have been but that shouldn’t be too much of a problem. The Budget predicted that growth in tax receipts to date this year would be 6.5% and these figures show that it has grown by 8.5% meaning that we are in a much better position than we thought we would be.
IT Contractors
This is all good news for IT Contractors because it means that the economy is now strong enough to withstand any budget cuts. It looks as if we are now in for a good few years of growth in the economy and in IT Contractor numbers and rates.
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(ArticlesBase SC #3158394)
John MichelCane -
About the Author:
IT Contractor – Umbrella company is a one-stop shop for IT contractors with news and advice e.g. on IR35 and the IT Contract market. We have Umbrella Companies, IT Accountant,IT Contracts, Pensions and Insurance and a Limited Company Set-up facility.
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IT Contractor – Umbrella company is a one-stop shop for IT contractors with news and advice e.g. on IR35 and the IT Contract market. We have Umbrella Companies, IT Accountant,IT Contracts, Pensions and Insurance and a Limited Company Set-up facility.
