As freelancers, sole traders, and agency contractors, we are often caught in the crossfire of new government policies that aim to reshape the workforce.
With Labour’s plans for a new industrial strategy, announced by Chancellor of the Exchequer Rachel Reeves in her speech this week at the Labour Party Conference, many are questioning whether these changes will protect the flexibility of self-employment or restrict it. While Reeves promises a future of growth, jobs, and fairness for workers, the self-employed community is concerned about how these reforms could impact their freedom to operate.
This Labour Party is proudly pro-business and proudly pro-worker.
Chancellor of the Exchequer Rachel Reeves
Labour’s Vision: Is It Pro-Freelancer?
Rachel Reeves’s recent speech at the Labour Party Conference laid out an ambitious roadmap for Britain’s future. “The era of trickle-down, trickle-out economics is over,” she declared. Reeves is focusing on long-term growth through investment, regional development, and a net-zero strategy by 2030. Her emphasis is on building a strong, secure foundation for Britain’s economy that benefits both workers and businesses.
But what does this mean for freelancers and the self-employed? Reeves stated, “This Labour Party is proudly pro-business and proudly pro-worker.” Her new deal for working people includes plans to ban exploitative zero-hour contracts, end “fire and rehire” practices, and introduce a genuine living wage. However, there’s growing concern that these reforms, designed to protect vulnerable workers, could unintentionally affect the self-employed by restricting their ability to engage in flexible, freelance work.
“It’s important that any new legislation recognises their right to be their own boss and doesn’t unnecessarily curtail their freedom to operate.
Dave Chaplin, CEO of ContractorCalcultor and IR35 Specialist
Dave Chaplin, CEO of ContractorCalculator, has voiced his concern about Labour’s stance on employment rights and protections. “Whilst I welcome any move to protect vulnerable workers who may feel exploited, it’s crucial that the Government strikes a balance that also respects and preserves the rights of self-employed professionals who have chosen to work for themselves,” he said.
“The self-employed are typically not vulnerable workers and have entered into commercial contracts willingly with their clients. It’s important that any new legislation recognises their right to be their own boss and doesn’t unnecessarily curtail their freedom to operate.”
The Problem of Zero Rights Contracts
Chaplin also highlighted a pressing issue many contractors face: being taxed as employees without receiving the corresponding employee benefits. “Current off-payroll tax rules have inadvertently created a ‘zero rights’ situation,” he explained, referring to how some freelancers are classified as employees for tax purposes, yet are denied employment rights like sick pay and holiday pay.
A possible solution, Chaplin suggests, is for employment rights to automatically trigger when a contractor is classified as “employed for tax purposes.” This could eliminate the need for freelancers to go through costly tribunal processes to claim rights, ensuring a fairer system.
Finding the Right Balance
Reeves promised Labour’s new industrial strategy would unlock investment, create jobs, and build prosperity. However, for self-employed professionals, the key question remains: will Labour’s plans protect their right to work independently?
Chaplin hopes the party will consider the unique position of freelancers in the workforce, stating, “While protecting vulnerable workers is paramount, it’s equally important to unshackle the UK’s freelance professional workforce and allow legitimate self-employed individuals to conduct business freely.”
A Call for Fairness and Flexibility
As Labour prepares to publish its industrial strategy, the freelance community is watching closely. Reeves’s pro-worker message may resonate with many, but the self-employed will be looking for reassurance that their ability to operate without unnecessary restrictions remains intact.
As Chaplin put it, “It’s important that any new legislation recognises their right to be their own boss and doesn’t unnecessarily curtail their freedom to operate.”
For now, freelancers and contractors are left hoping that future policies will strike the right balance between protecting vulnerable workers and ensuring the freedom of the self-employed workforce, whose contributions to the economy are vital.
Keep on top of policies impacting freelancers every week by signing up for The Freelance Informer newsletter and joining The FI’s LinkedIn and Instagram social media channels
I’m not holding my breath! The direction of travel over the last decade indicates it will be made increasingly more difficult to be self employed.
Labour will add yet more layers of red tape and tax us even more.