Re: "This measure is expected to impact 170,000 individuals" . . .
Whatever the rights and wrongs of the government's actions, contractors (and the organisations using them) will need to adapt their practice or employment choice - or, yes, if they feel that strongly - move abroad. But that is hardly an existential crisis for IT.
No gaping hole tbh; people who don't want to be taxed like everybody else and don't want to make the effort to adapt don't have the monopoly on talent and intelligence, and won't be missed much if they bugger off elsewhere.