IR35 has been controversial since it was first suggested, and it continues to be controversial now that it is a real thing that is in play for contractors all over the UK. Ir35 is being linked with all kinds of issues with contracting as well as the overall state of the economy in the UK since its rollout.
The most recent issue that IR35 has been linked with is the shortage of drivers for The Road Haulage Association. The projected 60,000 driver shortage is nothing less than a crisis, and yet HMRC and the government continue to state that IR35 is taking care of everything that they hoped it would take care of.
The main issue causing the shortage of drivers is withdrawals from the profession due to IR35. Prime Minister Boris Johnson was written direct letters stating that agency labour has withdrawn its services in response to IR35.
Low-profit margins and logistical issues have led to the shortage, and there is no proposed solution to jumpstart the process of finding new ways to attract drivers. As a result of the shortage, supply chains all over the UK have been affected, and people are starting to notice that they cannot get their favourite foods and products anymore locally.
Tesco has stated that it is currently destroying two loads of food a week due to late deliveries. The overall cost of the losses of products and services that are related to this one labour shortfall will be exponential, and it is hard to contemplate the damage that will be done to the food supply.
Experts are calling for urgent intervention on behalf of the grocery and products developers and companies who provide necessary products and food items to the entirety of the UK. There seems to be little movement by the government to rectify the issue, and contractors are not being offered any solution to the issues related to IR35 destroying contract driving jobs.
The government will likely continue to bury their heads in the sand, and recruitment agencies will have to look to their own solutions for this growing crisis.
