New research has shown that many UK contractors feel that the government is failing to encourage their way of working and does not appreciate what they contribute to the country as a whole.

The report, which was compiled by contractor specialists Contracting Scout, revealed that 60 per cent of contractor respondents feel that the Government actively discourages contract work and would rather contractors became permanent employees. Indeed, just eight per cent of those surveyed said that the Government views contractors as a vital part of the UK workforce.

The report also found that the majority of contractors do not believe that the Brexit vote will make a major impact, however 26 per cent feel it may make it more difficult to find new work, while 11 per cent feel it will be easier to track down new opportunities.

Will Ryles, head of recruitment at Contracting Scout, said: “It’s little wonder that contractors are feeling the government is trying to push them out of contracting. April 2016 saw new legislation come into force restricting travel and subsistence tax-relief for some umbrella or limited company workers inside IR35, as well as changes to the way dividends are taxed.

“The Autumn Statement is expected to reveal further details of the proposed changes to IR35 in the public sector. Contractors have enough to deal with without constant tax changes. There seems little appreciation for the fact that contractors provide flexibility and specialist skills."

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