Self-employed economic contribution falls by £25bn

Although recent data shows that the UK’s self-employed population has remained stable, the sector’s economic contribution fell by £25bn.

The Association of Independent Professionals and the Self-Employed (IPSE) revealed that this figure shows an eight per cent contraction compared to the previous year.

The IPSE’s 2022 Self-Employed Landscape report also found that the average age of the UK’s solo self-employed is now 48-years-old, and the 60+ age bracket grew by seven per cent, accounting for 21% of the self-employed sector.

Andy Chamberlain, Director of Policy of IPSE, said, “Whilst the self-employed population has been resilient at best – and stagnant at worst – it is very concerning that the sector’s economic contribution has fallen by £25bn, pointing to a less rewarding operating environment for solo business owners.

“This research should act as a wake-up call to government. Policies which are detrimental to the sector, such as the IR35 rules and the VAT threshold acting as a cap on activity, should be reviewed.

“We know that self-employment is an attractive option for key groups, particularly older workers; if government is serious about growing the economy and tempting them out of economic inactivity, it should be doing all it can to make self-employment an attractive and aspirational option.”

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