Uncertainty and anxiety were predominant as contractors and recruiters awaited the Budget announcement of 21 March.

The Budget is due to set out major changes to the tax regime for contractors working though managed service companies (MSCs). The government indicated in December in its pre-Budget report that it intended to remove tax advantages for some MSCs.

The new legislation also aims to make recruitment agencies liable, in certain circumstances, for the unpaid debts of MSCs.

The recruitment industry, through bodies including the Recruitment and Employment Confederation (REC), Association of Technology Staffing Companies (ATSCo) and several law firms, have lobbied the Treasury intensively in recent weeks. They have hoped that the Treasury might alter its plans. Failing that, they hoped for a postponement on the introduction of the legislation, set to take effect on 6 April. Recruiters feel this is far too soon, and has not allowed for adequate consultation.

The discussions have, until recently, given little hope that the Treasury would alter the substance or timing of its plans.

However, a report in the Times last week appeared to offer some hope. It suggested that there might at least be a delay in the implementation of the debt transfer laws.

But a Treasury spokesman told Recruiter: "This is nothing more than speculation. We've always made it clear that the final package of measures will be set out in the Budget."

Officially, this would appear to suggest no change. An official statement from the REC said: "Any delay would certainly allow agencies the time to digest the changes and ensure that they are compliant with the new legislation." It did not indicate that it had secured any such delay.

However, sources close to the REC indicated that its "hard work may have paid off".

Even after the Budget statement, many issues on the legislation will still be far from clear for agencies.