As the coalition government reached its 100th day on 18th August 2010, the Recruitment and Employment Confederation (REC) has looked at what has been achieved so far. The REC agrees with action taken by the government so far, but urges them to take action regarding the impact of regulations on jobs and taxation.

The Office of Tax Simplification was set up on 20th July in order to simplify the tax system, looking at regulations such as IR35 legislation, which many believe to be overly complex. The REC attended a meeting with Ed Davey, the Employment Relations Minister to discuss Agency Workers Regulations. Although it has been agreed that a further meeting will take place, the REC is eager to see that regulations are introduced in a transparent manner, with clear guidance for recruiters and freelancers alike.

The REC’S chief executive, Kevin Green said:

“The government needs to be increasingly pro-active in boosting job creation in the private sector. Recent announcements on simplifying business taxation and cutting red tape have been well received but there are question marks over whether the private sector can absorb expected job losses in the public sector. Getting this right is one of the main tests for the Coalition government.”

He added that the promised reviews for pensions reform, IR35 legislation and the Vetting and Barring scheme will all be welcome, but the resulting actions are what really matter. As the REC has been actively consulting with the government on the relative issues, as well as being included in consultations with relevant ministers, the outlook appears good for contractors.

IR35 legislation was introduced in April 2000 to deal with the issue of tax avoidance. However, although legislation is required in this area, it is a complex legislation which will benefit from serious review.