Theresa May has signalled bright news ahead for contractors under her leadership, after speaking directly with various contracting stakeholders at a roundtable event last week at Downing Street.
Contractors could even look forward the end of damaging tax legislation and red tape that have plagued the industry under successive Governments since the introduction of IR35 17 years ago.
The meeting, attended by the Association of Independent Professionals and the Self Employed (IPSE) amongst other organisations, sought input from attendees to help the contracting and small business sector take advantage of the UK’s post-Brexit opportunities.
“From dynamic start-ups to established family firms, our small businesses are the backbone of our country,” Mrs May emphasised before the meeting. “The priorities I have set: a more productive, skilled workforce, an economy balanced across the UK and open to new opportunities, can only be achieved if we listen to these businesses.”
How can contractors benefit after Brexit?
Mrs May has gone on the record to lend her backing to contractors, highlighting that she wants her Government to encourage the dynamic entrepreneurial spirit of the sector. When asked where the post-Brexit opportunities lie, contracting stakeholders were quick to highlight two areas in particular.
“The PM was clear that the UK needs joined up thinking if it is to be as competitive as possible outside the EU. She’s aiming for a single, clear industrial strategy for businesses of all sizes – including the very smallest – to prosper,” comments IPSE chief executive Chris Bryce, who proposed a six-point plan to Mrs May at the roundtable.
Top of the agenda for IPSE is the need to retain access to the single market. Several experts have voiced concerns over the difficulties that losing access to the single market will cause UK business. This is both in terms of restricting overseas business for contractors and providing hurdles to attracting EU talent to plug UK skills gaps.
In addition, IPSE emphasises the need to reduce the regulatory burden from contractors and small businesses, as well as reforming taxation for a more flexible economy.
Bryce notes that the plan was well received by May, and IPSE’s priorities have also been reinforced by Martin McTague, national policy director of the Federation of Small Businesses (FSB), who commented: “Smaller businesses want access to European markets, reassurance on key EU-funded schemes and a new approach to both regulation and de-regulation.”
Will we see positivity in the April 2017 Budget?
The talks were primarily to help contractors make the most of the UK leaving the EU, although attendees wasted no time emphasising the need for tax reforms to reduce the burden on the contingent workforce. High on the agenda was the proposed reform of IR35 in the public sector, the dangers of which were stressed to the PM by Bryce:
“We raised tax reform as a key issue that needs to be addressed for the self-employed, and it’s certainly now on her radar. We’ll be in further contact with all Government departments as we make the case that the proposed changes for public sector contractors will be disastrous and will only damage the public sector and the UK’s flexible economy.
“We’re looking forward to working more with the Downing Street team and the new Department for Business, Energy and Industrial Strategy to ensure new policy puts independent professionals first.”
Meanwhile, ContractorCalculator CEO Dave Chaplin is optimistic that the positive feedback suggests the new PM might be prepared to right some of the wrongs of previous Governments:
“Whilst rejecting the public sector IR35 reform is undoubtedly the main priority for the contract sector at this moment, we’re optimistic that these talks could provide a springboard for contractors to inform Government on the numerous measures that have hampered them over the years.”
Do contractors have a reason to be optimistic?
Speaking ahead of the roundtable, Mrs May stressed: “Britain’s 5.4m small and medium-sized businesses provide people with jobs and underpin the strength of our economy. They are a fundamental part of my vision of building a country that works for everyone, not just the privileged few.”
The omens look bright for the contract sector. With Mrs May’s approach seemingly more cooperative and heedful to the needs of the self-employed as previous leaders, contractors have reason to expect change for the better. Bryce agrees there is cause for optimism:
“The PM reaffirmed her commitment to making the UK the best ‘environment to do business’ and she’s clearly open to feedback from businesses of all sizes.”
“The fact that the PM has underlined her commitment to backing contractors and small business so early into her tenure is particularly reassuring,” adds Chaplin. “By the sounds of things, contractors can begin to look forward to a more accommodating working environment after years of being lumbered with burdensome tax legislation and regulation.”