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The recent budget announcement by Rachel Reeves has introduced notable changes to National Insurance (NI) and the minimum wage, both of which will impact umbrella workers—freelancers and contractors often hired through umbrella companies that handle payroll and tax compliance.

Labour’s proposed workers' rights reforms are poised to significantly impact the UK contractor market, which has grown rapidly in recent years as businesses have increasingly turned to freelance, gig, and self-employed workers. These reforms are part of Labour's broader agenda to improve protections for workers and address issues related to insecure employment and low pay.