PAYE umbrella contractors could be among the beneficiaries of the government’s quest to cut the miles of red tape currently impeding job creation in all sectors of the economy.

Some initial findings from its “Red Tape Challenge” have just been published and, although on this occasion referring specifically to the retail sector, the data and process have broader implications for the wider economy.  The aim is to tangibly cut excessive and unnecessary bureaucracy and boost the recruitment industry in particular – a development that will have a positive knock-on effect for umbrella companies if successful.

The Recruitment and Employment Confederation (REC) played an active role in the initial red-tape review and will be using ongoing feedback from its members to propose concrete follow-up measures.  The organisation’s Director of Policy and Professional Services, Tom Hadley, said that lingering barriers to growth had to be removed:

“Today’s announcement is limited in its scope but is only the start.  We will continue to make the case for measures that would lighted the load for recruiters.  For example, a fundamental review of the Conduct Regulations should be considered.”

Hadley went on to highlight the immediate effects of the Agency Workers regulations (AWR), which are due to come into effect from the beginning of October.  He signalled his organisation’s concern about the “potential administrative overload” for recruitment agencies and noted that, as with other EU directives, the government’s “wiggle room” over AWR is limited.  He considered it essential to ensure that the UK was not faced “with any further ‘offerings’ from Brussels in terms of future AWR type regulations.”

Employment relations Minister Edward Davey has assured the REC that the government will resist further EU-driven AWR complications and continue to cut red tape.

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