Small businesses could be deterred from using contractor accountants when the Agency Workers Regulations are implemented next month.
Stefan Martin, from Allen & Overy, believes that the additional costs of complying with the AWR will lead to a number of firms turning their back on temporary agency staff.
Being able to turn to a flexible workforce is highly beneficial during turbulent economic times but these advantages could be compromised as employers are burdened with yet more rules and regulations.
Martin expressed concerns that the increased costs associated with complying with AWR might lead to uncertainty for agency workers and the early termination of contracts. This could encourage some temporary accountants to think about starting up their own business offering payroll services.
Meanwhile, David Cameron is urging MPs to take part in the Business Buddy scheme and undertake work experience in a local small business. The scheme, which is being run by the FPB, is designed to give MPs a better insight into the way SMEs are run and the problems they face on a regular basis.
The Prime Minister said the coalition was committed to making this decade the most dynamic and entrepreneurial in the UK’s history. In order to achieve that, the government has to understand the issues facing small businesses and use that information to make sure entrepreneurs receive all the help they need to start up and grow a business successfully.
Oliver Letwin, the West Dorset Cabinet Office minister, was the first to take up the challenge by visiting Bridport Gourmet Pies.