Low business confidence to boost contractor hiring?

The poor levels of business confidence recorded around the UK could prompt more employers to consider offering contractor jobs rather than permanent positions if they need to take on more staff.

According to the latest Voice of Small Business Index from the Federation of Small Businesses (FSB), a net balance of 6.5 per cent of small firms plan to lay off workers during the first quarter of the year.

While this remains a relatively small percentage, it is nonetheless the highest level recorded since the survey began.

John Walker, national chairman of the FSB, commented: "The beginning of 2012 is beginning to look bleak with confidence incredibly low and businesses looking to shed staff."

To tackle the issue, the organisation is calling on the government to think about small businesses in response to the Modern Workplace consultation. Initially, it wants to see micro firms exempt from the extension of the right to request flexible working for all, a complete and simplified reform of both paternity and maternity leave, and an exemption for micro firms from pay audits that can be potentially time consuming and expensive.

Mr Walker added: "If the government makes the right choices and puts action into words we can turn this around. The government has a good chance to make a real difference to the livelihoods of small firms when it reports on the Modern Workplaces consultation."