REC/KMPG Report on Jobs: Temp billings rise at strongest rate in over 15 years:
Summary: The Recruitment and Employment Confederation (REC) and KPMG Report on Jobs – published today – provides the most comprehensive guide to the UK labour market, drawing on original survey data provided by recruitment consultancies.
Temp billings growth at 15-year high...
Agencies’ billings from the employment of temporary/contract staff increased strongly in August, with the rate of expansion picking up to the fastest since July 1998. Higher temp billings were supported by the sharpest rise in demand for short-term workers since December 2000.
...while permanent placements also rise strongly
The number of staff placed in permanent roles continued to increase at a marked pace in August, although growth eased from July’s 40-month high. Underpinning the rise was the fastest increase in available permanent vacancies since June 2007.
Sharpest rise in permanent salaries since February 2008
The rate of inflation of permanent staff salaries accelerated in August, reaching its fastest pace in five-and-a-half years. Temp pay rates also continued to rise, although the pace of inflation was slightly slower than the five-and-a-half year high seen in July.
Candidate availability continues to fall
The availability of staff to fill permanent job vacancies continued to decline in August, extending the current sequence to four months. The latest fall was solid, albeit slightly weaker than in July. Reflecting the strong trend in temp hiring, the availability of short-term workers deteriorated at the sharpest rate in six years.
Full guidance can be viewed http://www.rec.uk.com/press/news/2394
Government set to amend IR35 legislation to cover 'office holders':
The IR35 legislation was primarily designed to tax ‘disguised employment’ where workers receiving ‘payments from a client via an intermediary and whose relationship with their client is such that had they been paid directly, they would be employees of the client’.
Office holders previously outside the scope of IR35 formed a grey area of uncertainty for HMRC. In an attempt to curb this position and remove any opportunity for disingenuity, the Government aims to strengthen IR35 by including office holders for the purposes of tax - keeping in line with the Social Security legislation where IR35 is applicable to office holders for National Insurance purposes.
What is changing?
The Government will amend one clause of Chapter 8 of Part 2 of the Income Tax Earnings and Pensions Act (ITEPA) 2003.
“In Chapter 8 of Part 2 of ITEPA 2003 (application of provisions to workers under arrangements made by intermediaries), in section 49 (engagements to which Chapter applies), in subsection (1), for paragraph (c) substitute –
“(c) the circumstances are such that –
(i) if the services were provided under a contract directly between the client and the worker, the worker would be regarded for income tax purposes as an employee of the client or the holder of an office under the client, or
(ii) the worker is an office-holder who holds that office under the client and the services relate to the office.
So what does this mean for Freelancers and Contractors?
Payments for services provided by contractors/freelancers who hold an office holder position will be liable to PAYE and National Insurance irrespective of whether they work via an intermediary such as a personal services company or other third party.
Full article see: http://www.rec.uk.com/press/news/2269
Employers predict jobs growth for 2013:
A new survey from the Recruitment and Employment Confederation (REC) shows that more than half of employers are planning to hire more permanent staff in 2013.
According to the latest monthly JobsOutlook, a survey of 600 employers, the UK's jobs market is set to continue on a trend of slow growth during the 2013 with more than 50 per cent of employers looking to increase their permanent workforce and one in three planning to take on more temps.
REC dircetor Tom Hadley said: "At first glance the predicted growth in jobs for 2013 may seem at odds with recent gloomier news about lack of GDP growth."
"There are various factors influencing what's been termed this 'jobs puzzle'. The fact that wage inflation remains low is one reason that employers have been able to maintain or increase their workforce.
"Our latest data indicates that the robust performance of the UK labour looks set to continue. At a time of high profile closures on our high street, it is important to remember that a job creation is primarily fuelled by SME businesses."
Full article: http://www.rec.uk.com/press/news/2292
New airport on Kent's Isle of Grain... Says Brois Johnson :
Airline passengers flying into Heathrow face 16 more years of stacking and stress before a four-runway airport can relieve the capacity crunch, according to London's Mayor. Boris Johnson dismissed adding extra runways at Heathrow and Gatwick as "intellectual culs-de-sac," and came out firmly in favour of a new airport on the Isle of Grain in north Kent - opening no earlier than 2029.
The Mayor was launching Transport for London's evidence to the Davies Commission, which is evaluating airport expansion options. He lambasted politicians for failing to provide more airport capacity earlier, saying: "We've been sitting around like puddings for the past 40 years doing nothing. We have squandered decades and other countries are eating our lunch".
Until a new hub was ready, he said, London's airport system would struggle on as it is: "There is no quick fix, there is nothing you can do in the short term that addresses the problem." He ruled out "mixed mode" at Heathrow, where more capacity is extracted by allowing landings and take-offs on both runways, saying: "The government has tiptoed towards that minefield and has stepped away from it".
TfL has whittled down 16 options to three, each with four runways. "The Isle of Grain best combines regeneration with connectivity," said Mr Johnson. A rail link would reach central London in less than half an hour.
The other options are a new airport on reclaimed land in the Thames Estuary, and massive expansion at Stansted. Whichever is chosen, TfL envisages a sharp increase in destinations served, with more than 100 new international routes - including four times as many links to China and Latin America. Connections to the UK regions would also be improved.
Full article: http://www.independent.co.uk/news/uk/home-news/government-should-turn-heathrow-into-homes-and-open-new-airport-on-kents-isle-of-grain-says-boris-johnson-8708895.html