Opening of the UK economy

As the UK economy begins to open, it is clear that there is still some way to go for many freelancers before their businesses are able to return to pre-pandemic levels of operation. The lifting of restrictions on 12 April had some positive impact on freelance businesses. However, over three quarters (77%) reported that it had made no difference. Similarly, looking ahead to 17 May, almost a third of freelancers (29%) state that they are expecting a positive impact for their businesses as further restrictions are lifted: although the majority (64%), again, expect no difference.

Opening economy 1Encouragingly, the results revealed that one in five (19%) freelance businesses had not been negatively impacted by the pandemic and a further quarter (24%) reported that, although their business had been affected, they were already operating at pre-pandemic levels. This, however, leaves almost three fifths (57%) of freelancers who continue to suffer the negative impacts of the pandemic. Of these, the majority expect there is still a long road ahead before their businesses are operating at pre-pandemic levels.

As we emerge from lockdown, freelancers are faced with a number of concerns as many of them seek to rebuild their businesses. Most notable are the concerns around the changes made to IR35 in April 2021, which continue to devastate the sector. Freelancers are also concerned about being able to find and secure work - and, in many cases, that the pandemic has left them without savings and in debt. The re-opening of the economy also brings with it health concerns about having to meet clients in person, commute on busy transport and contend with stress and mental health issues.

It is clear that while some freelancers are already operating at pre-pandemic levels, the majority are struggling to rebuild their businesses. With wide-ranging concerns and fears that their businesses may take months or years to recover, it is clear the sector needs more support from government to bounce back from the devasting impact of the pandemic.

Read the full report here

 

Meet the author

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Joshua Toovey

Senior Research and Policy Officer