Government should listen to Contractors

Philip Ross, Labour's prospective parliamentary candidate for North East Bedfordshire (also the PCG's first Campaign Director), calls afresh for the Government to engage in proper consultation to create 'a better targeted and fairer piece of legislation that is more suited to the 21st Century and modern working practises'.

At the 1999 Labour Party Conference, I delivered a speech during the debate on Economy attacking the new revised IR35 proposals. Gordon Brown had delivered his key note speech a few minutes earlier on the theme of 'Enterprise for All'. I retitled my speech at the time as 'Enterprise for all and IR35'. I supported then and support now what Gordon had to say on the economy and the steps that he has taken to deliver a sound economy and I fully support the idea of 'Enterprise for all'. However I have always felt that there was a contradiction and that it was IR35.

I said then that:

"[IR35] fails to understand that knowledge and skills are commodities that are traded today just as manufactured goods have been traded in the past".

"For example these plans imply that a small company that invests in a van is a genuine business. But one that invests in knowledge is a disguised employee! This can't be right."

"Under these rules, small companies will NOT be able to retain profits to grow their business. Small companies will NOT be able to claim the same expenses as their larger competitors"

"These plans betray the principle, ' that the Workers should have the Right to reap the fruits of their own labour by hand or by brain'. These plans imply that I cannot work for myself "

I stand by these comments again now and urge the Government in the letter below to consider their position carefully as we await the judgement from the High Court.

Letter

Win or lose the judicial review currently being heard at the High Court the Government needs to listen carefully to the arguments that the Professional Contractors Group have put forward. IR35 is an unfair tax that treats IT contractors and others operating in a similar way as 'disguised employees' and taxes them as employees and not as businesses. It does not allow them to retain any money to grow their business, for training or to cover sickness or holidays. The law has been badly drafted and can lead to contractors paying tax on the same money twice. So if the Government should win or lose the hearing, instead of allowing it to go to appeal by either side, I would urge them instead to start again and consult fully with the contractors to create a better targeted and fairer piece of legislation that is more suited to the 21st Century and modern working practises.

Yours

Philip Ross

Labour's Prospective Parliamentary Candidate

For North East Bedfordshire

Labour Hall

Crab Lane

Biggleswade

Text of Speech