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Government NICs pledge marks watershed moment for the self-employed

Responding to the launch of the Government’s Good Work plan in light of Matthew Taylor’s review of modern working practices, Federation of Small Businesses (FSB) National Chairman Mike Cherry, said:

“Today’s commitment to shelve permanently plans to hike National Insurance Contributions for the self-employed marks a watershed moment. This now needs to be followed-up with delivery of the promise to abolish Class II NICs for the self-employed. 

“As it takes forward Matthew Taylor’s recommendations, we look forward to working with the Government to ensure that the genuinely self-employed receive the protections and rights they’re due. That includes tackling challenges the self-employed face when applying for mortgages and insurance products. It’s disappointing that these challenges have once again not received a mention today.   

“Of course we need to stamp out false self-employment. But what we definitely can’t have is the genuinely self-employed disadvantaged in the process.

“The Government’s focus on good work is the right one. Smaller businesses employ 60 per cent of the private sector workforce, providing the close-knit, supportive environments that can’t always be found in big corporations.

“With the unveiling of a raft of new rules, the Government needs to remember that legislation is not always the answer. Incentives and nudges are often the best route to improving modern working practices.”