The number of people in self-employment has grown by 46 percent since 2000 and today stands at 4.8 million, or 1 in 7 of the workforce. If this trend continues, the self-employed could outnumber the public sector workforce by the end of the decade.
A new report out today by RSA calls on the government to address the issues surrounding self employment and concludes that the policy efforts of recent years have too often been piecemeal and based on outdated business stereotypes.
Corporation tax cuts and deregulation drives – which have formed the basis of a broader laissez faire agenda – have reached the limit of their effectiveness says the authors adding that if the government is serious about improving the productivity, resilience and long-term financial success of the self-employed, then it must be more willing to intervene to set problems right – and to do so with a package of reforms stretching from taxation to welfare, through to pensions and late payments.
The report puts forward twenty ideas for how the self-employed could be better supported, including by reforming National Insurance contributions, ironing out the problems of Universal Credit, overhauling business rates, creating new rights for home-based workers, and introducing a form of Paternity Allowance and Adoption Allowance for self-employed parents.
“The measures we outline may not be universally popular. Some like our proposal on National Insurance may even feel like a step back for businesses. But each recommendation is presented with the long term interests of the self-employed in mind, particularly those who live in the most precarious circumstances.” says Benedict Dellot, Associate Director in the RSA’s Economy, Enterprise and Manufacturing team
“Our ultimate goal is to ensure that more people, regardless of their background, have the opportunity to enjoy the benefits of meaningful self-employment, which at its best can offer economic security married with flexibility and a deep sense of purpose.”
