Pay rates for freelance IT City workers have risen for the first time in four years according to the latest figures by ATSCo. The rise comes after four years of falling rates.

According to the Association of Technology Staffing Companies latest quarterly survey, the average hourly rate of an IT contractor in finance rose by 2% to £45 in the last six months of 2003.

However, this is still lower than £75 that IT contractors commanded at the peak of the IT boom four years ago.

The increase suggests that the city is finally displaying hard evidence of recovery after four years of redundancies and hiring freezes.

It would appear that the many IT projects that were put on hold with the economic downturn have now been reactivated.