Self-employed confidence takes a hit

New research has revealed that self-employed confidence in the economy has fallen to its lowest level since the start of the pandemic.

The IPSE’s (Association of Independent Professionals and the Self Employed) Q2 Freelancer Confidence Index shows that confidence in the UK economy for the next 12 months has fallen sharply from -27.4 in Q1 2022 to -56.7 this quarter.

Confidence in their own business for the next three months has also dropped, decreasing from 2.2 in Q1 2022 to -11.4 this quarter – the lowest recorded level for these indices since Q1 2021.

Derek Cribb, CEO of IPSE, commented on the findings, “After an uplift in freelancer confidence last quarter, reality has unfortunately set back into the UK’s self-employed.

“Faith in their own business, as well as the economy, has fallen dramatically over the past quarter, as the country grapples with rising inflation and the cost-of-living crisis.

“With costs set to grow even further over the coming weeks and months, self-employed workers could find themselves pulled back into the abyss. If the government is going to stop this from happening, then they need to act now. Otherwise, they risk damaging one of the most innovative and dynamic parts of the UK economy.

“Thankfully there are signs that the government is already listening to our calls for a fairer taxation system for the self-employed.”

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