What Does a General Election Mean for the UK’s Temporary Labour Sector?

With the general election now confirmed for July 4th, there is much anticipation about what the future holds for the UK’s temporary labour sector.

With a cost of living crisis impacting economic confidence in the years following the pandemic, the sector has struggled to gain a firm footing. UK businesses have had a plethora of excuses to use for not engaging temporary labour with recruiters and contractors left frustrated.

So, what are the implications of the pending general election?

What Plans Might Impact the UK’s Temporary Labour Sector?

With both major political parties committing to economic growth, the sector can maintain hope that recruitment will be a by-product of their plans. However, the pathways to growth may be very different depending on the eventual winner.?

According to manifesto insights, the Conservatives appear determined to win over voters with the promise of further cuts in National Insurance for employees and the self-employed. On the other hand, Labour has intimated that its focus will be on refraining from tax cuts and focusing more on protecting workers' rights and status through updated or new legislation and regulations.

Tackling Tax Avoidance Remains a Priority

Irrespective of which party wins the election, tackling tax avoidance in the sector looks likely to remain a priority.

The current government already has several outstanding actions related to its “Tackling Tax Avoidance in the Umbrella Company Market” consultation paper. Only last month did we highlight the Spotlight 64 guidance notes published by the government at the end of April, which confirmed the potential risks of tax avoidance schemes to recruitment agencies.

The opposition appears equally keen to address tax avoidance as a way of raising funds. In April, it published a report on how it might do so, including plans to bolster compliance capabilities and introduce legal and regulatory changes.

TJW - A Reassuring Constant During Uncertain Times

Between now and the general election on July 4th, TJW will closely monitor each party's manifesto and update you as we learn more.

Irrespective of the result, TJW will maintain its position as a supplier committed to compliance and customer service that represents a caring, transparent, and risk-free solution for contractors, agencies, and hirers.

If you want to know how TJW Contract Solutions provides a compliant and transparent payroll solution for contractors and agencies, call the TJW team on 01784 270300. We’re always happy to help.

Alternatively, visit our website at https://www.tjwcontracts.co.uk/ or follow us on LinkedIn.