26 May 2008
For immediate release
Four out of five professional contractors believe they will be considerably worse off by the end of 2008. This is revealed in a recent survey of 260 professional contractors by JSA, the Watford- based specialist accountants for contractors. The survey covered self-employed professionals in several fields, including medical, IT and teaching.
Despite the official Government 3 per cent inflation figure, 39 per cent of contractors believe that their expenditure on mortgage repayments, council tax, petrol and monthly utility bills will increase by at least 15 per cent. Indeed 66 per cent maintain that their personal finances have already been adversely affected by increases in mortgage rates and the tightening of the availability of mortgage funds.
The survey shows that although the jobs of 80 per cent of contractors have not been affected so far by the current credit crunch or tightening of bank lending, the recent Labour Government rout at the Crewe and Nantwich by-election is reflected in the view of 84.6 per cent of contractors who accuse Labour of failing to create a favourable environment for the self-employed since its initial election in 1997.
Contractors are more evenly divided as to whether a Conservative government would provide better opportunities and inflation-busting pay levels, with just under 50 per cent of respondents believing that things would be better for contractors under a Conservative Government.
Nonetheless 64 per cent of contractors currently working in the public sector, think that pay levels would be cut under a Conservative Government.
However the jury is still out on Boris Johnson, the newly elected Mayor of London with only 31 per cent believing that he will improve the economy of London and provide better opportunities for professional contractors. In fact more than half (51.37 per cent) thinks there will be public sector job cuts under the new regime.
While 73.07 per cent of contractors think the London 2012 Olympic Games will create new jobs in London for the self-employed, only 16.5 per cent think they would benefit personally.
“ This survey shows that contractors are being considerably hurt by the escalating cost of living but so far are not too concerned about their job prospects.” says Barry Roback, JSA’s Chief Executive. “There is no doubt that the marketing for contractors is still strong, particularly in the IT and medical sectors, but like the rest of the population, they feel that their spending power is diminishing by the day. With a huge gap between their own experience of inflation and the Government’s official figures, it seems inevitable that there is going to be pressure for end-users and agencies to improve their pay levels to contractors. Most contractors do not appear to feel that they are going to find work drying up, so they are likely to feel less reticent in demanding more money than permanent employees in more vulnerable sectors.”
Roback adds that the survey reflects a deep disappointment in the current Government’s approach to the self-employed, and a ‘wait and see’ view of the Conservative party’s willingness to adopt a more positive approach to contractors. “Given the constant changes in legislation relating to the self-employed – very little of it being beneficial – it is hardly surprising that contractors appear to be voting with their feet,” he concludes.
-ENDS-
For further information contact Robin Liston, press relations adviser to JSA on 0208 883 7314 / 07740 829171 or robinliston@pobox.com or Barry Roback, Chief Executive of JSA on 01923 257 202 or roback@jsagroup.co.uk.
JSA Group Of Companies, JSA Services Ltd, JSA House,110 The Parade, Watford WD17 1GBW (www.jsagroup.co.uk)
JSA QUESTIONNAIRE FOR CONTRACTORS MAY 2008
QUESTIONNAIRE RESULTS
|
Yes
|
No |
| Has your contract work been directly affected by the current credit crunch and the tightening of bank lending? |
19.1%
|
80.9%
|
| Have your personal finances been affected by increases in mortgage rates and the tightening of the availability of mortgage funds? |
33.9%
|
66.1%
|
|
Would you say that by the end of 2008, your expenditure on mortgage payments, council tax, petrol and monthly utility bills will have increased by approximately
|
5% |
10% |
15% |
More than 15% |
| 23.75% |
37.12% |
13.1% |
26.03% |
| Do you think that by the end of 2008, your monthly take home pay will have increased sufficiently to meet the increase in your outgoings? |
15.40%
|
84.6%
|
| Do you believe that overall the Labour Government has created a favourable environment for you as a contractor since its initial election in 1997? |
15.38%
|
84.62%
|
| Do you believe that if a Conservative government were elected, there would be better opportunities for contractors and increased rates of pay beyond inflation? |
49.07%
|
50.94%
|
| If you work in the public sector, do you think that opportunities and pay levels would decrease if a Conservative government were elected? |
35.92%
|
64.08%
|
| Do you think that the election of Boris Johnson as Mayor of London will improve the economy of London and create more jobs in your specific sector in the capital? |
31.92%
|
68.08%
|
| If NO to 13, do you think that there will be public sector job cuts in London as a result of his election? |
51.37%
|
48.63%
|
| Do you believe the 2012 Olympic Games in London will create new jobs for contractors? |
68.67%
|
31.32%
|
| If YES, do you think you will be able to benefit personally? |
16.52%
|
83.48%
|