How Will the New Prime Minister Affect Contractors and Agencies?

With the UK government in turmoil over recent weeks following the unsurprising resignation of Prime Minister Boris Johnson, several ministers threw their hat into the ring to become the next Prime Minister.

And while, at the time of going to press, the final candidates have yet to be announced, many of those making a bid for leadership are already talking about the policies that they would consider in their new role as PM.

So, for those of us in the recruitment space, what might change with a new leader?

NIC Rise

Boris Johnson was highly condemned for implementing a national insurance rise which was confirmed in January. From April, NIC contributions increased by 1.25%. Boris Johnson and the then Chancellor, Rishi Sunak, justified the rise by explaining that it was to pay for health and social care. But in a time of spiralling costs of living, the decision was heavily criticised for putting additional pressure on people who were already struggling under the burden of increased monthly outgoings.

The NIC rise has been a hot topic during the leadership contest, with several of the candidates saying that it would be the first thing to go if they are chosen as the new PM.

Tax cuts

One of the most common discussion points wherever there is a contest for leadership, tax has been a big issue, with many contenders putting tax at the forefront of their discussions. And while some have been reluctant to promise tax cuts, there have been a few very vocal in their intention of making changes to corporation tax, income tax and business rates.

There have also been several mentions of cutting VAT on energy bills which would relieve some of the burden on households especially during the winter months when heating bills are higher.

Equality and culture

Almost all candidates have had some reference to culture and equality in their campaign, from human rights through to the highly controversial Rwanda deportation policy. Several candidates have alluded to so-called “anti-woke” policies, with discussions on topics such as gender-neutral language and trans rights. Many critics say that the candidates are failing to understand the country that they are leading.


Several candidates have mentioned the environment in their campaign, with most promising to forge ahead with plans for Net Zero by 2050. Other candidates have pledged to pause the race for Net Zero, until the energy crisis has been resolved.

Any changes to the Net Zero plans will impact all companies in all sectors who have settled into the idea of making sustainability an important factor in working processes.

We at JMK are following the leadership situation closely and will keep our contractors and clients informed with any changes which might affect them. In the meantime, if you have any questions at all feel free to get in touch and one of the team will be glad to help.


Since 2002, JMK have been compliantly consolidating back-office, accountancy and payroll functions. 

We have evolved to provide a range of expert services; such as Funding, becoming a leading provider to the contracting industry.

We know every agency is different in some shape or form, even if only by a little, but important bit. Combining our knowledge and experience of multiple sectors enables JMK to support you all from recruiters and payroll, through to finance, compliance and management.

With JMK as your trusted partner, even the smallest team can process the largest payroll, regardless of payroll type.

Have a look at the wide range of services our Funding can provide to you and your business, it is far more than just payroll and finance.

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