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Drop in inflation will benefit self-employed, but government policy remains a concern

IPSE has welcomed the fall in UK inflation, but warned that government IR35 tax policy is still a major worry for self-employed people.

Office of National Statistics (ONS) data released today showed that inflation fell to 2.3% in November, down from 2.4% in October. The fall – to the lowest levels since March 2017 – was driven by cheaper petrol prices, which fell by 2.6 pence per litre between October and November.

Andy Chamberlain, IPSE’s Deputy Director of Policy, commented: “The drop in inflation will be welcomed by many across the UK because it means that people will feel more money in their pocket – a particularly positive development at this time of year.

“As inflation steadily falls towards the Bank of England’s target rate of two per cent, the most pleasing aspect is that petrol prices are fuelling the fall in inflation. With many self-employed people spending more time travelling to multiple clients or to win new work, the fall will make a real difference to their everyday business costs.

“While the fall in inflation will be welcome news for the self-employed, concerns remain. Only last month IPSE research found that freelancers expect government policy to drive their business and the wider economy into decline over the next 12 months.

“With freelancer confidence at near record lows and uncertainty over Brexit increasing by the day, the government should prioritise the self-employed as we enter such a crucial period for the economy.”