Important Pre-Budget News
9th December 2009

False self-employment in the Construction Industry
– no news is good news

In today’s Pre-Budget Report (PBR) the following was announced regarding the consultation on the proposed ‘definition’ of self-employment.

5.95 Following the consultation on false self-employment in construction, which closed on 12 October 2009, a summary of the responses received will be published in the New Year. The Government remains committed to addressing the problem of false self-employment in construction and will continue to work with stakeholders to develop a legislative solution that is well targeted, effective and that allows the industry to retain a flexible labour supply.

This will be a sigh of relief to those expecting more detailed proposals or even draft legislation.  There is also perhaps a hint in the final sentence that the proposals in the consultation document were inadequate or unworkable.  The summary of responses to be published next year is expected to be highly critical of the practicality of the proposals.  In addition as nothing has been formally announced in the PBR and a change of government seems probable, it remains to be seen whether a new incoming government will have the same appetite and commitment as this one to place additional burdens on the industry.

We will continue to review the PBR fully and update our clients with any further news, and we will of course be keeping a watchful eye on the consultation responses next year and any developments.

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