The Courage Economy
Today, one in every 13 workers in the UK are self-employed. They provide vital support to businesses across the UK, making a huge contribution to our economy and our society in the process.
We believe they should get a better deal in return. In this manifesto, we show what that deal could look like.
Key recommendations
Proper ministerial oversight of HMRC
Despite the size and scale of the department, HMRC operates largely independent of ministerial oversight. Because of this, taxpayers often feel that they have no recourse through elected politicians where the department is acting unfairly, inefficiently or carelessly.
IPSE believes that HMRC should have proper ministerial oversight. This would ensure that the department’s activities – from enforcement to customer service – are checked and backed by a cabinet level minister.
Stop obscenely long payment terms
Payment terms of 60 days – offered on a ‘take it or leave it’ basis by powerful clients – are far from uncommon, whilst 90 day and 120 day terms are not hard to find, despite legislation intended to prevent it.
The UK should mirror Belgium’s approach of updating legislation to deem contractual payment terms longer than 60 days to be null and void, defaulting to the statutory schedule of 30 days.
Equalise the maternity allowance for self-employed mothers
Extend the Maternity Allowance to the first six weeks of leave to bring its coverage in line with Statutory Maternity Pay whilst also allowing the self-employed to access Statutory Adoption Pay. There is no justifiable reason why these benefits remain exclusive for employees.
Scrap the off-payroll working rules
The IR35 reforms are anti-business and a barrier to growth. They are directly responsible for keeping one in 10 contractors out of work.
Rather than forcing people to work in a way that fits with the tax system, we need a tax system that fits with the way people are working, and will continue to work.
Government should scrap the off-payroll working rules and work constructively with industry to find a way to tax work fairly.
What's the Courage Economy?
Freelancers, sole traders, contractors, side hustlers – anyone who makes the bold choice to strike out on their own and become their own boss. It’s a choice that embodies flexibility and autonomy in work, as well as the courage to trade the stability of employment for the opportunity to build your own business.
Together, the millions of people who work for themselves add £330 billion to the UK economy. They help businesses to recruit flexible talent, deliver major projects and achieve results that couldn’t be reached without them.
Despite this, we believe the self-employed are underrated in Westminster. Policymaking too often fails to keep the self-employed front of mind, meaning they miss out on the benefits of change solely because they work for themselves, rather than someone else.
The party that fully embraces the self-employed at this election stands to win the support of up to 4.3 million people. With this manifesto, we’re calling on the government to make the self-employed a policymaking priority, unlocking the full potential of this dynamic part of our economy.
IPSE’s 2024 manifesto
Read our manifesto for the self-employed
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