Jan
06
2011
Company umbrella contractors in construction 'set for tough 2011'
Posted by Sarah Putt
Those with umbrella companies who are working in the construction industry have been told that a tough year could be in store for them.
Brian Berry, director of external affairs at the Federation of Master Builders, issued the warning, acknowledging that confidence in the sector at the smaller end is "not very optimistic".
He cited the recent VAT increase from 17.5 per cent to 20 per cent as part of the reason for this dip, as well as builders in repair and maintenance work "suffering quite badly".
Furthermore, company umbrella contractors in larger schemes have also been hit, mostly because of government cutbacks, which has led to some reducing their staffing levels.
Mr Berry added: "For small and micro firms [who deal with] domestic repair work, they are suffering because householders have less disposable income to spend on their homes."
His views come after the Markit/Chartered Institute of Purchasing & Supply (CIPS) index found that activity in construction has fallen in December, after nine months of growth in the sector.
Those with umbrella companies who are working in the construction industry have been told that a tough year could be in store for them.
Brian Berry, director of external affairs at the Federation of Master Builders, issued the warning, acknowledging that confidence in the sector at the smaller end is "not very optimistic".
He cited the recent VAT increase from 17.5 per cent to 20 per cent as part of the reason for this dip, as well as builders in repair and maintenance work "suffering quite badly".
Furthermore, company umbrella contractors in larger schemes have also been hit, mostly because of government cutbacks, which has led to some reducing their staffing levels.
Mr Berry added: "For small and micro firms [who deal with] domestic repair work, they are suffering because householders have less disposable income to spend on their homes."
His views come after the Markit/Chartered Institute of Purchasing & Supply (CIPS) index found that activity in construction has fallen in December, after nine months of growth in the sector.