The PCG, which represents around 11,500 IT contractors and freelancers, expressed concerns about increased regulation following reports that the government would support a European Union directive giving temporary workers the same pay and benefits as permanent employees.

In a statement it said that while it 'supported the aims of legislation which will protect vulnerable temporary workers and outlaw exploitation, its own evidence suggests that PCG members do not fall into this category'.

PCG chairman Simon Juden said: 'We fear that the burdens on client and contractor alike would be large and could therefore discourage the use of professional freelancers.

'We are not persuaded that these measures are necessary in this broad scope and feel that incorporated freelance workers should be excluded from such legislation.'

The PCG statement added that it would 'make sense' for all concerned with protecting and encouraging enterprise across the EU to have information before signing up to a 'one size fits all' legislation that it sees as 'inappropriate'.