I am a contractor for an IT company?

[anglesey34]

Basically i have been working with the same company on the same contract for 14 months now. 2 months back my boss recommended me for another job within the same company. I had an interview and was put forward for the job by the interviewer. Then a week later my boss told me i was not allowed to progress as i am not full time staff so to speak. is this actually legal? i mean they even gave me an interview, put me forward for the job and then out of no where. You are a contractor. do not pass go, do not collect $200.
This is in the uk incase laws are different overseas. Can anyone help with this at all?