Government needs to provide more support for the self-employed

(2 minutes to read)

The Association of Independent Professionals and the Self-Employed has warned that the government needs to look at how better to support the self-employed to improve productivity.

Latest ONS figures have revealed that self-employment numbers remain stable, however, the IPSE believes that it’s worth considering how the poor economic growth and productivity affects the self-employed.

The report shows that the labour market has stayed strong, with self-employment remaining at approximately 4.8 million or 15% of the workforce and unemployment falling from 4.6% to 4.2% – the joint-lowest on record.

This is, however, set against ongoing poor economic performance and a 0.5% drop in productivity in Q1 2018.

Tom Purvis, IPSE’s Economic Policy Advisor, commented, “These figures show the labour market is still in a fairly strong position. Employment has continued to rise, unemployment is still falling, and self-employment remains broadly stable.

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“What we need to talk about, however, is the wider economy. Because although the labour market is performing well, there is still poor economic growth and productivity. In fact, productivity fell by 0.5 per cent in Q1 2018, and it is worth considering how self-employment affects this. As a report by the Centre for Research on Self-Employment has shown, the self-employed give a major boost to productivity in the construction industry, and it is likely they drive productivity in other sectors too.

“So, while the labour market seems to be in a strong position at the minute, the Government must focus its efforts on turning this into better economic performance. In short, it must protect the self-employed and give them the support they need. Policies like lowering the VAT threshold or rolling out IR35 to the private sector would jeopardise the self-employed, threaten the vital productivity boost they bring, and cause severe problems for a UK economy that only grew 0.1 per cent in Q1 2018.”

To find out more about contracting please contact Sophie on 01442 795 100 or email sophie.lewis@dolanaccountancy.com

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Dolan Accountancy was set up by Simon J Dolan, the man behind the well-known brand SJD Accountancy. With over 25 years experience in the contracting marketing, Dolan Accountancy has the heritage, reputation and credibility you can trust. Working closely with our sister company, ContractorUmbrella, it means we can offer one low cost, fixed fee package at £95 + VAT per month. This gives you the flexibility of using both our Limited Company Accountancy Services and our award winning Umbrella Service, for one inclusive cost. We don’t believe in tiered packages or hidden extra fees, instead we aim to give you everything you need, including:

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If you’d like to find out more about how Dolan Accountancy can help you and your business, please give us a call on 01442 795100 or email sophie.lewis@dolanaccountancy.com or jaime.thorpe@dolanaccountancy.com.

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