As a 35-year old Brit who has spent his entire career in the UK tech industry, I do not recognise what you describe.
However, there are many "tech industries" and so I can't tell you if the culture in the Java, C++/C#, Windows or Banking etc. industries is like that, because in the Internet, Startup, Ruby/Python type industries it absolutely 100% is not.
Animosity between permanent and contract staff is something I've never witnessed either. Contractors who aren't worth their money? Sure they're going to get a hard time, but if I'm working with a contractor who has 20 years experience on me, sure, I'm expecting them to earn good money. I always saw them as an inspiration, nothing else. I know my colleagues have too.
So, whatever sector you're in, and whatever employer you're with, get out and look elsewhere: it's not like that in many, many, many other parts of the industry.
I'm in finance sector (mainly insurance) for reference on the J2EE/C# side of things.
I think a number of people have been burned by bad contractors in the city. There are tonnes of them from experience who cruise around with absolutely no reputation.
I'm a contractor in the city but not in finance. If I had to guess I'd say you get bad contractors there because the money on offer is huge, so it will attract people who have no idea what they're doing but are great at blagging.
However, there are many "tech industries" and so I can't tell you if the culture in the Java, C++/C#, Windows or Banking etc. industries is like that, because in the Internet, Startup, Ruby/Python type industries it absolutely 100% is not.
Animosity between permanent and contract staff is something I've never witnessed either. Contractors who aren't worth their money? Sure they're going to get a hard time, but if I'm working with a contractor who has 20 years experience on me, sure, I'm expecting them to earn good money. I always saw them as an inspiration, nothing else. I know my colleagues have too.
So, whatever sector you're in, and whatever employer you're with, get out and look elsewhere: it's not like that in many, many, many other parts of the industry.