Are market conditions for the UK highways engineering contractor workforce about to take a positive turn?

Let’s be honest, contracting in the UK highways engineering sector isn’t what it used to be.

Before the IR35 off-payroll reforms hit the public and private sectors in 2017 and 2021, contract labour was a strategic advantage. It gave businesses the flexibility to scale resources in line with project demand, react quickly to changing pipelines, access niche expertise on short notice, and manage costs when workloads dipped.

Years later, many of those same businesses are still feeling the ripple effects. The changes to IR35 left some organisations cautious, hesitant to bring in contractor talent for fear of tax liability, compliance challenges, and reputational risk if found non-compliant in the eyes of HMRC.

But that might be about to change...

A shift in momentum

Recent months have seen a noticeable uptick in market activity. However, wider economic and political uncertainty continues to weigh on long-term hiring confidence. Many employers are wary of overcommitting to permanent resource, but that caution can create delivery pressure if workloads spike.

In this kind of environment, agility matters. Contractors provide exactly that: flexible, project-specific expertise that can be deployed quickly and cost-effectively to meet demand.

The IR35 landscape is evolving

The good news is, the legislative landscape has started to stabilise. Recent clarifications have eased concerns around liability, helping to restore confidence among employers.

Status determination tools are now more advanced, consistent and readily available, giving businesses a reliable way to assess and demonstrate compliance. With better data, clearer processes, and more transparent reporting, companies can once again access contractor talent without unnecessary risk.

What’s next?

The signs are pointing towards a resurgence in contractor demand, and we expect double-digit growth year-on-year across the UK highways sector.

After a challenging few years, the sector looks set to regain some of its trademark agility. And for contractors ready to step back in, opportunity is building.

Time to dust off the boots, the market’s moving again!