The number of self-employed people grew by 103,000 to 4.8 million over the last year as they become a critical part of the UK's economic success.

The Federation of Small Businesses (FSB) says the Government must support them by ruling out future National Insurance tax grabs.

Mike Cherry, national chairman at the FSB said: "The self-employed community is an increasingly critical driver of economic growth in the UK. As the self-employed battle spiralling inflation and a new wave of political uncertainty, the last thing they need is for the Government to revisit failed plans for a national insurance hike.

"Instead of hitting the self-employed with tax increases, this new administration should address discrepancies in the treatment of the self-employed and employees under the welfare system, such as wrestling with a Universal Credit system that's incompatible with their unpredictable incomes."

He added: "In this unforgiving climate, the Government should be doing all it can to support the nation's strivers. Bringing the Maternity Allowance closer in line with Statutory Maternity Pay and exploring the feasibility of Statutory Paternity Pay for all eligible self-employed parents would be a welcome starting point."

Meanwhile the FSB says in its latest report, 'The Self Organising Self-Employed', that the self-employed are coming together to fill the gaps left by Government by pooling their resources in schemes that offer financial support and security.

Collaborative ideas, such as Bread Funds, allow the self-employed to contribute to a communal fund which can then be accessed to cover late payments or used to provide sick and maternity pay. This provides participating individuals the peace of mind that employees have when faced with hardship in their working life.

The FS says the emergence of such collaborative and supportive initiatives is a response to the unwillingness or inability of previous Governments to resolve issues facing the self-employed. This includes the clear disparity that exists in the social security system between the self-employed and employees.

Picture: Pixabay

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