Exactly what is the fuss here?
I'm sorry to be harsh mate, but you're a contractor, what they do with your position is entirely up to them. If they want to promote/change your position without pay rise, then they can do that, and you are free to walk away if you don't like it. You're annoyed they didnt offer "Perm Contracts", you mean a Perm role? Again, they didnt come through with it, but tough tits, business is hard at the moment.
Lastly, you're annoyed because "During which time, I wont get holiday / sick pay"... mate, you're a contractor, you know the deal. I've contracted in the past, it didnt even cross my mind to be annoyed about that, that's what contracting is, frankly if you don't like it, find a perm role somewhere. I haven't been paid for holiday or sickness since 2006.