True.
But, you have to pay your own pension (-20% (your and your employers contribution)), you have no job security at all, you don’t get paid sickness or holidays (lose 25 days pay a year), you are fixed term, you have to pay legal and accounting fees (about £1K per annum for a Ltd company), you get treated like crap by most organisations, you have no say in the area you work in, you have to deal with agencies who like to keep your money for 3 - 6 months, you need to fill in VAT submissions every 3 months and pay them even if you have not been paid. The tax advantages are being seriously erroded, so the rates will rise to compensate. And, as has been said, most Gov’t organisations could not afford the skills they buy this way, as the people don’t fit into the regimented pay scales.
Spoken as an ex-contractor via a limited company.