Pay rise

[Dan@OrangeGenie]

I want to live in the UK Gov world!

https://www.theregister.co.uk/2017/0...d_ir35_exodus/

[WordIsBond]

If contractors hold the line, that's inevitable. They need the skilled workers, if those workers aren't willing to take a cut in take home pay, they'll have to compensate them for it.

Tax increase, paid for by Her Majesty's Government.

This is basic economics at work. When will government learn that actions have consequences beyond the ones they want, and that people who have freedom will make decisions in response to their actions which will result in new problems for them to solve? Idiots.

[Maslins]

It's basic supply and demand, GCSE economics stuff!

[Alan @ BroomeAffinity]

As Chris says, basic stuff. It was the first thing I, and many others, thought when it was announced. The treasury, however, seemed not to realise.

[Dan@OrangeGenie]

Some of the PS bodies I have spoken to through Agencies won't bat an eye lid and happily uplift, others tell me they can't pay the current rates.

Balls in the contractors court I say.

[Cirrus]

As Chris says, basic stuff. It was the first thing I, and many others, thought when it was announced. The treasury, however, seemed not to realise.

I don't think the Treasury ever said they were trying to minimise costs. You're putting those words into their mouths.

Their objective is to make everybody pay tax. Contracting and all sorts of working tax credits mean half the population are getting their jobs subsidised. The Revenue want people to pay their own way and not leach off them. That means costs go up and that inevitably includes costs for other government departments.

[Alan @ BroomeAffinity]

I don't think the Treasury ever said they were trying to minimise costs. You're putting those words into their mouths.

Their objective is to make everybody pay tax. Contracting and all sorts of working tax credits mean half the population are getting their jobs subsidised. The Revenue want people to pay their own way and not leach off them. That means costs go up and that inevitably includes costs for other government departments.

You're putting words in my mouth. I never said that was their stated aim, but that it was an inevitable by-product.

[northernladuk]

I thought we only got a pay rise when the budget is kind to us?

[WordIsBond]

Their objective is to make everybody pay tax.

In this case, everybody does. They've increased the tax on contractors but the contractors aren't the ones paying it, it is the Government.

That means everyone pays -- the taxpayer, those who use Government services, everyone.

The ONLY thing this has accomplished is optics. The Government has made themselves look "more fair" in their own eyes, and in the eyes of certain people in the press. That is, until people start looking at the rates compared to what employees are paid and say, "Hey, that's not fair, either!"

It's all stupid.

[radish2008]

Could this be a good thing ?

Higher rates in PS to offset the tax mean that those jobs become more attractive.

Contractors start to move into PS.

Private sector rates go up to attract contractors back.

We end up earning more.