Contractors working through umbrella companies or limited companies may well be encouraged by a new poll from the Institute of Directors (IoD).
The post-Budget IoD survey of 620 UK firms recorded a “significant boost” in business confidence. Well over half of the respondents – 58 per cent – said that they felt more confident following the Chancellor’s announcements last week. A mere nine per cent claimed to feel less hopeful.
The rise in confidence may well result in an employment surge, too, which would generate new placement opportunities for PAYE umbrella contractors and many others.
Noting that the economic recovery in the UK is very fragile, the IoD’s Chief Economist and Director of Policy, Graeme Leach, said that the poll provides encouraging news that business leaders “have responded so favourably to the Budget.” He added that confidence in these precarious times could make the difference between recession and recovery. The IoD’s Policy Voice Survey, thankfully, suggests that “the Budget has improved the outlook for business investment.”
The poll contrasts with one published last week by the Federation of Small Businesses (FSB) in the immediate aftermath of the Budget, which suggested that nearly half of FSB members (45 per cent) believed the Chancellor’s plans would have no positive impact on their businesses. Only 31 per cent thought that they would be beneficial.
Even so, FSB’s National Chairman, John Walker, commended the Chancellor for producing a pro-business Budget and listening to his organisation’s concerns. He believed, however, that Mr Osborne missed an opportunity to stimulate the economy by failing to extend the NIC holiday to micro-businesses.