Labour vows to stamp out bogus self-employment

Aaron Morby 8 years ago
Share

Labour today pledged to close the loophole allowing  workers to claim they are self-employed when working for a payroll firm.

After a year-long review into the scheme,  Labour said it would change the system so that workers were assumed to be employed if there were “obvious signs” that was their true status.

According to latest Treasury estimates around 300,000 workers in construction were in this position – costing more than £380m.

Rachel Reeves MP is Labour’s Shadow Chief Secretary to the Treasury, said:False self-employment in construction is a scandal that is costing the taxpayer hundreds of millions each year at the same time, as undermining responsible employers and the sustainable development of the UK construction industry.

“The Tory-led government has ignored the evidence and refused to take action. A Labour government will put this right.”

She said that the last Labour government proposed criteria whereby workers would be automatically “deemed” to be treated as employed for tax purposes if they met criteria that most people would regard as obvious signs that they were employees, rather than self-employed subcontractors.

“This will be our starting point. We will of course consult further and work closely with the construction industry to design the criteria so that the right level of flexibility is maintained, that those who are genuinely self-employed are not hit.”

Baroness Donaghy’s report for the last Labour government pointed to self employment as a factor in low levels of training, job security, the likelihood of reporting serious accidents or unsafe practice  in the industry.

Reeves said: “As things now stand, the majority of employers in the sector who do the right thing and pay the right level of tax are vulnerable to being undercut by those who do not. This is not fair and it’s not good for the long term strength and sustainability of the industry.”

Latest news

HS2 awards £310m station lifts and escalators deal

TK Elevator signs 160 lifts and 130 escalators deal for four stations
10 hours ago

Robot cutter set to revolutionise paving jobs for Eurovia

Automated system will spell end for noisy slab cutting on busy sites
10 hours ago

First mass built carbon negative homes get underway

St Modwen first volume developer to build affordable carbon-negative homes
16 hours ago

GMI Construction names new CEO

Lee Powell takes helm as CEO at GMI Construction in growth push
16 hours ago

514-home London scheme clears final hurdle

Inland Homes declares victory after three-year planning battle over Hillingdon Master Brewer site
16 hours ago

Henry Construction wins £30m Clarion housing scheme

Ravensbury estate regeneration in Mitcham is Henry's first project for Clarion
16 hours ago

Lovell lands £700m homes deal with Suffolk council

Development joint venture will see at least 2,800 homes built across the county
16 hours ago

Ballymore pulls 51-storey tower plan amid fire safety concern

London Fire Brigade raises concern about single staircase and fire strategy
4 days ago

New work surges as materials shortages ease

Mild weather and easing of supply chain bottlenecks lifts new work 5.7%
4 days ago

PDR Construction goes into administration

All staff made redundant as suppliers owed millions
5 days ago

Brick-laying robot gets approval from NHBC

Robot can now be used in construction of new homes covered by NHBC warranty
4 days ago

Temporary visa scheme needed for London sites

Mayor of London demands action over site skills shortages
4 days ago

Construction worker dies after fall from mobile tower

Court hears how tower wasn't configured correctly
4 days ago

Glencar wins £50m Peterborough logistics hub

Works start on trio of sheds at Kingston Park
4 days ago

Green light for £330m Woking high-rise cluster

Work to start on five blocks towards the end of 2022.
5 days ago

Countryside chief executive makes sudden exit

Major shareholder takes seat on board as first quarter trading falls below board expectations
5 days ago

Big names line-up for £2.7bn Birmingham roads deal

Arup, Arcadis, Balfour Beatty, Carnell, Colas, Kier and Tarmac among firms eyeing contract
5 days ago

Galliford Try scoops £56m Milton Keynes PRS job

Building arm will deliver 329 rental flats across four buildings rising up to 11 storeys
5 days ago

Designers shortlisted for £1bn Oxford Innovation district

Oxford Uni and L&G advance £1bn Begbroke science district plan
5 days ago

Subbies chase cash as work stops on PDR Construction sites

Subcontractors left in dark by £83m turnover contractor
6 days ago

Britain’s concrete producers join forces

Industry agrees single voice through lobbying group UK Concrete
5 days ago

Shapps pauses Smart motorway rollout amid safety concerns

Contractors will be allowed to complete schemes currently under construction
6 days ago

Wildgoose went down owing £9m to trade firms

More than 700 firms have been left out of pocket by the £50m turnover business
6 days ago

Keltbray bags Silvertown tunnelling waste removal

Riverlinx tunnelling team sign Keltbay to barge out excavated material
6 days ago

Ray O’Rourke’s successor starts work

Seamus French starts countdown to firm's founder stepping down
6 days ago

Filler injections rejuvenate ageing concrete roads

Metrail Construction solves squelchy concrete road problem with resin injections
6 days ago

McAleer & Rushe wins £42m Norwich student conversion

Crispin House office to be converted into 680 student rooms
6 days ago

Vinci completes first pour of its ultra low carbon concrete

Taylor Woodrow reduces the carbon footprint of the construction project by up to 70%
7 days ago

KPMG admits financial regulator misled in Carillion audits

Tribunal over KPMG and former staff's forgery allegations gets underway
7 days ago

Scottish contractor goes under with loss of 33 jobs

Iain Potter Construction hit by rising costs and problem contracts
7 days ago

Contractor services