As the UK approaches the 2024 national election, the major political parties have unveiled their manifestos, each proposing strategies that could significantly impact the country's temporary labour and freelance sectors.
So, how do the Conservative, Labour, and Liberal Democrat parties plan to address the challenges facing temporary employment, contractors and the self-employed?
Taxation and Regulation
Taxation and regulation remain a focus throughout the manifestos, particularly concerning tax avoidance.
The Tories and LibDems have included proposals to simplify the tax system, which could benefit freelancers and temporary workers by easing self-assessment and compliance. However, the approaches to IR35 are distinct. The Conservatives are likely to stick with the current model, while the Liberal Democrats have committed to a complete review of the legislation.
In contrast, the Labour Party plans a comprehensive review of Universal Credit to support those in precarious employment, including contractors and freelancers. This reform aims to make the system more responsive to irregular income patterns, providing a better safety net for contractors and freelancers.
Employment Rights and Worker Protections
Should Labour win the general election, their single worker status proposal could be the most impactful proposal for the future of the temporary labour sector. Such a change could significantly impact all contractors and freelancers, irrespective of their status.
In general, all of the manifestos included pledges to enhance worker rights, with a focus on fair treatment and compensation and improved working conditions and rights, including for gig economy workers, contractors, and freelancers.
Support for Small Businesses and Self-Employed
Whilst Labour and the LibDems both included commitments to supporting self-employed individuals through the social security system as a means of protection and security, the Conservatives have taken a different tact.
The Tories have emphasised supporting SMEs, which often engage freelancers and temporary workers. Their policies include access to finance, training, and support services, fostering a conducive environment for small businesses to thrive and provide more opportunities for temporary workers.
Conclusion
The main political parties have presented distinct yet similar strategies for supporting the UK's temporary labour and freelance sectors. The Conservative Party has focused on reducing regulatory burdens and supporting small businesses. Labour has emphasised worker rights and social security reforms, while the Liberal Democrats have prioritised fair pay, employment rights, and support for self-employed individuals.
For voters, especially contractors and the self-employed, the devil will be in the details. Their voting preferences are most likely to be influenced by the strength of their desire for change and reform.
Champion Contractors will closely follow developments in the lead-up to the general election. Visit LinkedIn for further updates.