Government Urged To Support Job Creation

Following the dip in economic growth seen last month, a number of experts have warned that the Government must support SME’s and cut down on red tape in order to help aid the recovery.

The experts, including the Forum of Private Business (FPB) and the Confederation of British Industry (CBI)  spoke about their worries for the months ahead. Their particular concern is that the Government is not doing enough to combat the public sector cuts, such as by taking on more contractors or encouraging temporary positions at a time when permanent positions are being seen as less viable by some.

FPB senior policy adviser Alex Jackman said that. “Not enough has been done to remove the shackles created by tax, red tape and the continued lack of affordable funding preventing SMEs from growing, creating jobs lost in the public sector and driving real, sustained economic recovery.”

He warned that, “Unless that changes, and changes quickly, there remains a very real threat of a ‘double dip’ recession and that could spell disaster.”

The CBI’s chief economic adviser Ian McCafferty added that, “On its part, the Government must ensure obstacles that hamper businesses in their efforts to create jobs, invest and export must be removed.”

Government legislation, such as IR35 which is currently being addressed, could be preventing freelance workers taking up contracts, and this is the sort of red tape that these experts are referring to.

The REC are another group who have urged the Government to act. They recently highlighted the value of contractors, saying that highly skilled temporary workers can provide crucial support to permanent staff.

ICS work with a team of experts in employment and tax law to ensure our services are fully compliant with existing IR35 legislation and the latest government regulations. You can contact us now for a tailored proposal based on your individual circumstances as a contractor.