Freelance body welcomes inflation falling, again
Inflation falling to its lowest level since March 2017 is being hailed as a welcome sign for the UK’s 4.8 million self-employed people.
Although it represents only a small fall on the previous month and was partly thanks to the timing of Easter, inflation’s downward trend to 2.4% in April 2018 will ease freelancers’ costs, said IPSE.
It also means freelancers’ day rates are now increasing in real-terms -- for the first time in fact since the third quarter of 2017, said IPSE’s Tom Purvis, citing IPSE’s latest confidence index.
But a note of caution was sounded. “There may be some cause for concern for the self-employed,” he said, “because of the upward pressure the hotel and restaurant industry is placing on inflation.
“Rising prices in this sector will disproportionately affect the self-employed because they typically spend more time working away from home and don’t have an employer to pay for it.”
“Both of these measures would not only directly harm the self-employed; they also risk contributing to higher inflation because the price of goods and services would inevitably rise,” the association said
“The self-employed are one of the economy’s – and the government’s – greatest assets; with the uncertainty of Brexit looming, it should strive to support, not scupper them.”