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Contractors more optimistic about future, but concerns over economy remain
Posted Apr 29, 2010
A new survey suggests that contractors are feeling more optimistic about the future, but concerns still remain about the economy and taxation.
Specialist accountancy firm CMEASY, polled clients in a number of sectors, including IT and professional services, engineering and design.
Many contractors painted a gloomy picture of business in 2009. When asked how business had been for them during the year, only 11% said it had been better than usual (9% a little better, 2% a lot better), with 42% saying that it had been about the same. 22% of respondents said business had been a little worse than usual, while 25% said it had been a lot worse. In addition, 45% said their hourly rates had stayed the same, while a similar number (44%) said they had fallen, and only 11% had managed an increase.
Lack of contract work remains a key concern
Fortunately, there was more optimism about the year ahead, with 35% expecting business to be a little better than last year and 7% a lot better, while 37% expected things to stay roughly the same. Just 6% thought things would get a lot worse, and 15% a little worse.
When asked to consider the biggest potential challenge for contractors in 2010, lack of work was the biggest concern, highlighted by 59% of workers, followed by tax levels (15%) and IR35 (14%).
Perhaps surprisingly, a shortage of bank lending was the principal concern for just 5% of respondents. Red tape was also highlighted by 5% of contractors, with late payment the biggest concern for 2% of those taking part in the survey.
The biggest potential opportunity for contractors over the coming year was the prospect of an improving economy, flagged up by 43% of respondents, followed by more firms outsourcing to keep costs down (28%) and increased availability of skilled workers (19%). Improved lending by the banks was foreseen by 8% of contractors, while just 1% predicted less red tape or earlier payment during 2010.
Most contractors favour Tories in election
With the general election fast approaching, there was good news for the Conservative Party, which was considered by 54% of contractors to have the best policies for them. Just 2% named Labour as the best party for contractors and the Lib Dems got no votes at all, while 5% supported one of the smaller parties. Perhaps more tellingly, 39% said none of the parties had the right policies for them.
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