With so many recent changes taking place regarding the IR35 legislation, a recent survey has revealed that public sector employees do not support the latest reform proposals.
The findings, carried out by the Recruitment and Employment Confederation (REC) found that public sector employers do not support the changes to the monitoring and reporting of skilled contractors’ tax status that the government is proposing.
Furthermore, they are particularly concerned that the rule changes will inhibit their ability to attract the talented individuals they need to effectively run local authorities and NHS trusts.
Seven out of ten (69.5%) public sector employers expressed fears that the government’s changes would have a negative impact on councils, hospitals and schools, by increasing their wage bill or damaging their ability to attract and afford the senior contractors and interims they need to manage local public services.
REC Chief Executive Kevin Green, commented, “At a time when the public sector is struggling to recruit talent because of a declining pool of people with the right skills, this could really spell trouble for the effective running of the NHS and other vital public services. The public sector needs to be able to attract the brightest and the best, yet our own government is creating unnecessary barriers for beleaguered HR teams who need to bring in fresh talent and smart thinking during these difficult times for public spending.
“There is no doubt that HMRC should be enforcing the rules better. But in light of this latest data and the wealth of supporting evidence out there, we believe that the government should conduct a wholesale review of IR35 and at the very least, delay the implementation of this proposal – rather than rushing it in for April 2017.”