Rising inflation set to inflict damage onto Britain’s freelancers
The rise of inflation in the UK economy is set to disproportionately harm the business prospects of the nation’s freelancers, according to a leading members? association representing the interests of self-employed workers.
The Association of Independent Professionals and the Self Employed (IPSE) responded to September’s jump in the Consumer Prices Index (CPI) published by the Office for National Statistics (ONS) by warning of the sensitivity of freelance workers to rising inflation rates.
The CPI rose to one per cent in September 2016, an increase of 0.4 per cent from the rate reported in August.
Commenting on the figures, economic advisor for the IPSE Lorence Nye explained that the increase in costs will be hurting the UK’s smallest business owners the most, as naturally they have the tightest margins.
The ONS cited increases in cost for overnight hotel stays and motor fuels? as main upward contributors? for the inflation rise.
Acknowledging these factors, Nye warned that the increase in such costs will hurt flexible workers disproportionately, as they tend to be on the go a lot more than traditional employees, before calling upon the government to introduce support measures for the UK’s freelance workforce.
it’s now more important than ever that the government looks at means of supporting this vital part of the UK economy, he said.
Praseeda Nair is the editorial director of Business Advice, and its sister publication for growing businesses, Real Business. She's an impassioned advocate for women in leadership, and likes to profile business owners, advisors and experts in the field of entrepreneurship and management.
Britain's freelancers are on average owed 5, 432 in late payments at any one time, with 36 per cent forced to borrow from a payday loan company to cover themselves. Around half have considered quitting working as freelancers due to the many financial woes that come with not being paid on time.