The Association of Independent Professionals and the Self Employed (IPSE) has expressed dismay at the Organisation for Economic Cooperation and Development’s (OECD) call to raise the tax for the self-employed.
The recommendation, made today in the OECD’s biennial survey of the economy, was one of several suggestions to address the UK’s persistently low productivity.
In response, IPSE expressed bemusement at the idea that stifling the UK’s flexible labour market could promote productivity. Simon McVicker, IPSE’s Director of Policy commented: “It seems beyond strange that the OECD believe that raising NICs for the self-employed – and thus stifling our flexible labour market – could somehow boost productivity. Far from dampening productivity, the UK’s 4.8 million self-employed are a major boost to it, adding a total of £255bn to the economy every year.
“The self-employed bring invaluable flexibility to our economy, which is in fact one of the UK’s biggest competitive advantages over other OECD countries. By providing flexible expertise to businesses, the self-employed help them to innovate and expand, which in turn allows them to take on more staff, thus boosting employment across the country.
“If the Government really wants to promote productivity, it should support the self-employed, not stifle them. With Brexit fast approaching, our economy needs their flexibility and dynamism now more than ever.”