Contractor confidence rises

New research has found that despite the cost of living crisis, contractors’ confidence in their own business is growing.

The Association of Independent Professionals and the Self-Employed (IPSE) revealed that this confidence has risen from -11.0 in Q4 2021 to 2.2 this quarter.

The IPSE Confidence Index shows that as we’ve moved further away from the pandemic, the self-employed are becoming increasingly satisfied with their work – job-related stress has fallen to its lowest levels since Q3 2019.

There are of course still some worries, with confidence in the economy as a whole still remaining low.

The report found that 86% of freelancers now expect their input costs to increase over the next 12 months – rising from 81% in Q4 2021.

Worryingly, 39% of contractors are now incurring business debt (slightly up from 38% in Q4 2021), with 16% incurring debt via credit cards issued in the name of their self-employed business.

Derek Cribb, CEO of IPSE, said, “After a mixture of pandemic uncertainty and post COVID-19 inflation, life for freelancers is finally starting to look up. Work is returning, confidence in their own business is growing, and stress is falling rapidly. In other words, the dynamism and energy of the self-employed sector is finally beginning to rear its head once more.

“However, freelancer confidence should not be taken for granted. The cost-of-living crisis is still wrecking the UK economy and the government needs to ensure that self-employed workers aren’t pulled back into the abyss.”

To find out more about contracting please contact Jaime on 01442 795 100 or email jaime.thorpe@dolanaccountancy.com.