IPSE warns about freelancers feeling the squeeze
In light of NIESR’s report on the economy in the second quarter of 2017, IPSE has issued a warning about rising costs for freelancers and the self-employed. Although NIESR (the National Institute of Economic and Social Research) made positive predictions about renewed growth in the second half of 2017, it also predicted that inflation will hit three per cent by the end of the year.
IPSE’s Confidence Index has shown that freelancers and the self-employed are already being squeezed by rising prices and input costs. Increasing inflation and price growth will disproportionately affect freelancers and the self-employed because of their significant overheads – not least their working equipment and frequent travel. So if inflation reaches three per cent as NIESR predicts, it will be a major blow for them.
It is imperative that the Bank of England protects the self-employed – one of the most dynamic and productive sectors of the economy – by providing clear, detailed forward guidance about interest rates to help them plan for the future.
IPSE’s Policy Development Manager, Jordan Marshall, commented: “Renewed growth will be very welcome for the UK economy after several sluggish quarters. But we can’t ignore these spiralling inflation rates, which disproportionately affect freelancers and the self-employed.
“With pay remaining stagnant and inflation hiking up equipment and input costs, the self-employed are really feeling the squeeze now. And our Freelancer Confidence Index has shown they recognise this as a serious and growing concern. The Bank of England must do its best to limit the damage and support the self-employed with clear forward guidance about interest rates, thus allowing them to effectively plan their financial futures.”