Labour pledges to end false self-employment in construction

In September 2013, on the eve of Labour Conference the Labour Party committed to cracking down on false self-employment in the construction industry.

Labour then subsequently announced that if it formed the next government the money saved by stamping out false self-employment in construction would be used along with ending other major tax breaks for business to scrap the bedroom tax.

Steve Murphy, General Secretary of UCATT, said: “This is an excellent decision the bedroom tax is causing misery for tens of thousands of the poorest in society. This is about real politics for real people, removing tax breaks for the wealthy and redistributing the money to those most in need.”

Rachel Reeves the Shadow Chief Secretary to the Treasury has said that the next Labour Government will use the deeming proposals, which had been proposed by the previous Labour Government as their starting point in cracking down on false self-employment.

Under the deeming proposals all construction workers would be deemed to be employees for tax purposes unless they meet distinct criteria to prove otherwise. Those criteria had previously been set as supplying materials, supplying heavy plant or supplying labour.

The announcement on false self-employment was the culmination of a year long review which was commissioned by Shadow Chancellor Ed Balls and announced at TUC Congress in September 2012

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