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Short-Term Prospects Look Good For UK Contractors

St Paul's Cathedral and Millennium Bridge

The UK’s army of independent workers has every reason to be optimistic about employment and pay prospects. But while this holds true for the short term, Chancellor George Osborne will have to give certain issues careful consideration if his economic plan is to bear fruit in the long term, according to the Professional Contractors Group (PCG).

These observations were made as part of the latest monthly economic analysis published by the PCG. Resident economist and report author Georgios Nikolaidis pointed out that the current situation gave freelancers good reason to be optimistic about contract availability and pay rates. The UK economy has resumed growth, inflation and unemployment have come down and the government has tightened public finances. This is in turn driving consumer demand and fuelling confidence within the business community, the result being a boost to investment and more work for independent professionals.

Short-term prospects look good for the freelance community but it will take more…

But this encouraging situation is not certain to persist into the long term, according to the report. Short-term prospects look good for the freelance community but it will take more to ensure that the positive macroeconomic picture does not prove short-lived, Nikolaidis commented. Osborne will have to achieve some important balances if he wants his economic plan to deliver long-term results. The Chancellor is betting on a range of tax incentives to address key challenges such as low business investment and low exports. However, these incentives could clash with his plan for fiscal consolidation. In addition, the UK could be hit by a cost of living crisis if economic growth does not lead to improvement in living standards, Nikolaidis noted.