Contractors accelerate the economy

Umbella company contractors have been deemed as “natural accelerators of the economy”, yet the Government has been called upon to lower compliance requirements for freelancers.

Managing Director of PCG, John Brazier, stated: "We are not at all surprised freelancers are in demand, they are the natural accelerants of the economy as UK Plc gets back on its feet.

“However, we still live in uncertain times and government must wind up the rhetoric and start cutting red tape and regulations to enable the freelance workforce to deliver its full potential.”

With strict legislation creating barriers for new contractors entering the market, it has been argued this could hinder the overall recovery of the economy. Although the opportunities and demand are there, legal compliance is still a large hurdle.

Reducing legal compliance could encourage umbrella company contractors to enter the industry and let the UKs economy run at optimal performance. Additionally, many public sector contractors are migrating to the private sector, due to many redundancies and spending cuts.