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Issue 10; 23 May 1999

House of Commons Debate | PCG Submission

We are now at the end of a very important week for our campaign.

On Monday The House of Commons debated an amendment to The Welfare Reform Bill an eleventh hour introduction by the Government, which to us, looks like the legislative start to IR35.

Those of you who watched that debate, on television, will have seen that, whilst the Tory and Lib/Dem benches were reasonably full, the Labour benches were empty.

At 11pm, when the matter was put to the vote, the Government had a majority of 193 (375 - 182). After the vote the Labour benches were still empty. This goes to show that, whilst showing no interest in the subject, Labour members were willing to simply vote the way their whips told them to. Talk about "lobby fodder", but more of that later.

A number of members have asked if we should continue with our campaign and, haven't we just simply lost. The answer is an emphatic NO. We should not give up, we may have lost this minor skirmish but we have, most definitely, not lost the battle.

The matter now goes to The House of Lords, where the amendment can and probably will be overturned. We shall certainly be briefing Peers and we will have a lot longer than three days, to do it in.

Question?
Will the Government want to play ping pong with this amendment. Answer-Probably not

The Government now know that this is an unpopular measure and many people have seen through the original statement that this was a net to catch people who left work on a Friday only to start work the following Monday as a "Consultant". Some, of course, do just that and the PCG have made it clear that we are broadly in favour of the Governments move if this were the sole purpose, the Friday/Monday scenario.

However, it is becoming increasingly clear that the Government are attempting to change the rules on incorporation so that small, one man operations will lose all the advantages.

The longer the issue goes on, the more that intent will be seen. You may have seen the start of newspaper articles saying that the Government have made a mistake on this one. An excellent example is a recent item in The Times - You may expect to see more.
Whatever the outcome of the amendment to The Welfare Reform Bill, its content cannot come into effect before the Finance Bill 2000 is passed.

Returning to this week. On Thursday the Professional Contractors Group delivered its submission to The Inland Revenue. This submission is available in PDF format and may be downloaded at https://www.pcgroup.org.uk/resources.irsubmission1.pdf (32Kb). The supporting survey report may also be downloaded at http://www.shout99.com/contractors/survey/survey.pdf (70Kb)
That submission is the start of the consultation process announced by the Revenue and it is to be followed up by a meeting on Thursday 10th June. PCG have been invited to be at that meeting. We represent a large body and our views should be heard.

Whilst we expect the Revenue and The Government to dig their heels in, at least for the time being, I must repeat This is a battle we can win providing we stay together.

Returning to Labour MPs. Next week I shall publish a list of all those who voted for the amendment on the PCG members site. If any of them are your MP you may care to write and ask them "Did you understand the issues"? "Why did you vote to put my future in jeopardy" ?

Finally, to those who have not yet joined the PCG and paid their subscription I simply say this. United we stand and have a chance. Divided________

David Ramsden
Campaign Director
Make a difference: Join the Campaign; https://www.pcgroup.org.uk