The PM needs inspiration – here’s five ways he can champion the self-employed

By Andy Chamberlain, Director of Policy IPSE

The Prime Minister is a fiscal-conservative. This is not a controversial statement. It is not meant as a criticism, nor a compliment (though Mr Sunak would take it as such I suspect). It is a statement of fact. This Prime Minister believes fundamentally in balancing the books, steadying the ship and closely guarding every last penny of public money. Fiscal-conservatism is in many ways a ‘good-thing’, particularly if you happen to be in charge of the country’s finances, but there is at least one major draw-back – it tends not to win general elections, especially if that’s all you have to offer.

Sunak’s Five-Point Plan fails to excite

Early in the new year the Prime Minister set out his five-point plan – five promises against which he wished to be judged. It’s fair to say the announcement wasn’t universally well received. Sunak’s pledges to halve inflation, reduce national debt, grow the economy, cut NHS waiting times and legislate to stop illegal immigrants arriving in small boats were met, in the main, with a mixture of indifference and disappointment. If Sunak wants to generate more excitement among the electorate, it’s clear he’s going to have to come up with something, well, more exciting. Luckily for him, we at IPSE have the perfect solution: the Conservatives should embrace the country’s growing appetite for self-employment.

Self-employment is an aspiration for many voters

Last year, IPSE commissioned research into the attitudes of employees towards self-employment.

We found two in five employees had considered ditching their job and working for themselves. Almost half of all employees wanted to take on a side hustle. When asked why they thought self-employment was attractive, the top three answers were more flexibility, being their own boss and better work-life balance. A third believed they could earn more money by going freelance. Imagine that. A happier, more motivated workforce and one that is generating more income too (which actually translates into more tax, Mr Sunak, despite what you may believe).

When asked why they hadn’t taken the plunge, around half feared the lack of job security and a regular income. This is perfectly understandable. Self-employment is risky and most self-employed people will tell you they’ve had worrying moments. It’s not for everyone and we are not proposing the government should encourage or coerce people out of their day jobs. But we are saying it should support those that are prepared to strike out on their own. The Conservative government should be celebrating these risk takers; it should recognise that having a thriving freelance sector is a very good thing for the economy. 

Conservatives have a lot to do if they want to win the next General Election

The Conservatives are well behind in the polls – over 20 points at the last count. The country isn’t fairing well – the cost-of-living crisis, the strikes, the divisions over Brexit, calls for independence in Scotland are all taking their toll on the collective mood. The PM needs a vision, a big idea, that will cheer everyone up, boost incomes, get the economy moving and re-energise its base. Fiscal-conservatism alone isn’t going to do that, but giving people more freedom to choose how they want to work just might.

IPSE’s Five-Point Plan

But how can Sunak demonstrate this support? Well IPSE has a whole manifesto of policy proposals and we’d be delighted if he implemented any of them. If we could choose, we would say he should start with another five-point plan, to complement the one he’s already got:

• Sorting out the confusion around employment status and enshrining people’s right to work as self-employed
• Simplifying the tax system, including getting rid of the wretched IR35 rules
• Increasing the trading allowance for side hustles, giving more freedom to budding entrepreneurs
• Orchestrating a big push on saving for later life for the self-employed
• Implementing policies to help the self-employed access training

Championing the self-employed should be a no-brainer for the Conservative Party. It is a fundamentally Conservative principle – everyone should have the right to work however they choose and if a significant number choose to work independently, in a free and fair market, then that’s all the better for them and for the businesses that choose to work with them. Fiscal-conservativism isn’t the only tenet of big ‘C’ Conservativism It should be matched with an ambitious and optimistic belief in the power of individuals to drive economic growth.

If the Conservatives don’t believe in this, then what’s the point in having a Conservative Party at all?

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