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LONDON DAILY ARCHIVE

UK Construction Firms Shift to Contractors to Cut Tax Bills

Businesses favor temporary roles over permanent hires

06 August 2025 · 23:40 UTC

Construction firms across the UK are increasingly turning to contractors instead of full-time employees in a bid to reduce tax burdens and increase operational flexibility.

Analysts note the trend is being driven by changing employment laws and financial pressures amid slower project approvals.

The shift is raising questions about long-term job security and worker protections in the industry.