Contractors will be the focus of an independent review that has been announced by the Prime Minister David Cameron. The review aims to highlight the contribution contracting and self-employment make to the UK economy while examining the challenges faced by contractors and how these can be addressed by the government.
Julie Deane OBE, founder of The Cambridge Satchel Company, will be leading the review that will look to explore why increasing amounts of people are opting to take the leap into contracting. The result for contractors will be recommendations on how the UK can better support those seeking to work for themselves.
“The business landscape has changed so much in the last 10 years and in such a way that self-employment is now a viable option for so many more people. I hope this review will help others in the future to turn their ideas into successful businesses,” highlighted Deane.
The Prime Minister endorsed the decision, adding: “[Deane’s] review will shine a light on self-employment, a key part of our long term economic plan, looking at what can be done to provide more security and peace of mind for people wanting to work for themselves.”
Self-employment now accounts for more than a quarter of the growth in UK employment since 2010, with approximately 4.5m people now choosing to work for themselves. This has contributed to making the UK labour market one of the most diverse in the world.
The review was initially included in the Conservative Party’s Business Manifesto, following calls for its inclusion by the Association for Independent Professionals and the Self Employed (IPSE).
The Prime Minister’s announcement was well received by IPSE Chief Executive, Chris Bryce, who said: “IPSE welcomes this review, which demonstrates the Government’s commitment to help the self-employed meet the challenges we have been highlighting.”
Bryce continued: “Some of the biggest obstacles facing this group relate to saving for retirement, getting mortgage applications accepted and affording time off following the birth of a child. Supporting the self-employed is vital for the UK’s entrepreneurial spirit and the wider wellbeing of UK plc.”
ContractorCalculator CEO Dave Chaplin was similarly pleased with the news: “Contractors helped take the UK economy out of recession and the flexible contingent workforce underpins our economy’s competitive advantage in the global marketplace.
“This review should educate policymakers about the steps they need to take to sustain and grow that competitive advantage by removing red tape and reforming overly complex tax legislation, such as IR35, that impacts negatively on contractors.”
The review is expected to be published in early 2016.