What does the Autumn budget mean for contractors?

As the UK recovers from the most severe financial crisis in generations, the Autumn Statement 2011 could only focus on one objective; strengthening the economy.

Despite there being no targeted measures to promote and recognise the importance of the UK’s flexible workforce, we believe that a number of the measures announced by the Chancellor will have a positive impact on the temporary workforce. 

Small businesses

A large portion of the Autumn Statement this year was geared towards businesses and helping them to secure finance, encouraging investment and reducing the business charges payable.

The measures include credit easing in the form of the National Loan Guarantee Scheme. A pot of £40 billion will be allocated, with £20 billion made available initially. The money will be used to allow the Government to guarantee loans to small businesses, therefore reducing the interest rate payable. On average, this scheme will reduce the interest rate payable by one per cent.

With many small and medium businesses relying on contractors due to the flexibility and skills that they offer, this is welcoming news. The injection of capital into the lending system gives opportunity for development and growth and in turn, demand for the services of the flexible workforce will increase.

Additionally, the Government has made a long term commitment to developing Britain's infrastructure and housing projects - that commitment will inevitably create new job opportunities for contractors. The national infrastructure plan will cover 500 new projects, including broadband, rail, roads, power stations and ports.

Other measures that could impact small businesses and contractors...

•The government intends to make it easier to hire and fire staff.

•Small and medium sized enterprises are to be encouraged to tender for more government contracts.

•Capital gains tax waived and 50% income tax relief for small start-up business investors

Measures that may affect your personal finances

•Rail fares, including fares on London tubes and buses, will be capped at inflation plus 1%

•Fuel duty increases of 3p per litre planned for January 2012 have been cancelled.

•A mortgage indemnity scheme that is intended to help 100,000 first-time buyers to get onto the housing ladder