With the IR35 public sector reform resulting in many contractors choosing to look else where for work, new data has revealed that these changes have had a significant impact on the London Underground renewal.
Research from TfL has confirmed that the severe delays to the renewal London Underground rolling stock is due to the changes to the IR35 public sector rules.
The data shows that this delay has been caused by the number of weld project contractors leaving, which has resulted in the project running more than 90 days late.
The TfL’s explanation of the delay says:
‘A significant number of critical weld project employees left TfL as a result of IR35 – a revised tax legislation affecting public sector contractors. We are currently working on mitigations to reduce the impact on the project.’
The news comes in the same week that medical professionals are threatening legal action over IR35 rules in the NHS.