Political change must deliver for the self-employed

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Downing Street is once again gaining a new resident. The safe money is on it being the former Manchester Mayor and newly elected MP, Andy Burnham.

The challenges facing him are significant. Economic growth is weak, business confidence is low and unemployment is historically high. Whoever is in government, businesses up and down the country are counting on them to succeed in fixing this.

So we look forward to engaging with the new PM, because there are millions of self-employed people who have very little idea where they stand in what comes next.

The headlines say that Mr Burnham’s approach will be "business-friendly socialism.” I will leave the analysis of how that stacks up to the political experts. But there is one question that I am interested in answering: will it leave the self-employed better off?

We have heard positive noises so far on Employer’s National insurance, on business rates for pubs, and on the income tax personal allowance.

But what is less certain is the broader plan for the self-employed sector. If you think we don’t need one, let me convince you otherwise.

There are 4.4 million self-employed people in the UK. It’s a diverse sector, made up of sole traders, freelancers, contractors, company directors, fractionals and consultants. Each of them helps power a massive £366bn contribution to the UK economy.

They’re a growing part of the global workforce. And looking at the attitudes and preferences of younger generations in the world of work, all the signs point towards a future with more independent working and self-employment.

Yet we hear so little about them when governments make plans for the economy or the workforce. They are often bundled in with the catch-all term “small business” or “SME”, a term we have now dropped from our vocabulary.

That, in a nutshell, is the problem. The people who build something from nothing and absorb personal risk to pursue a business by themselves seldom get the recognition they deserve.

In the event Andy Burnham does become our next Prime Minister, I will be reaching out to his office to set out the issues that matter most to our members and the wider self-employed sector.

We believe the self-employed should have a proper, recognised place in the next government’s plans for the economy and the labour market.

That means unburdening low income self-employed from digital tax requirements and letting side hustlers keep more of what they earn.

It means a workforce strategy that promotes and celebrates self-employment, instead of pushing people back into employment with hiring restrictions and tax barriers.

It means taking steps to boost the number of local freelancers winning contracts to deliver projects for local authorities.

They have contributed to this economy through some very difficult years. They are weary of taking on more risk, more requirements and getting less in return.

They deserve to know that the next government sees the pressure they are under and has a genuine desire to make self-employment easier.

That is why we've published a discussion paper setting out the immediate steps a new government could take from day one – from reversing the IR35 reforms keeping one in ten contractors out of work, to fixing the parental pay gap that penalises the self-employed simply because of how they work.