IPSE: Flexible economy is essential for entrepreneurial state

Friday 30 September 2016

A flexible economy is vital for the introduction of an entrepreneurial state, IPSE has suggested. 

These comments come after Shadow Chancellor John McDonnell’s Labour Party Conference speech where he laid out plans for the UK’s economy following Jeremy Corbyn’s win in the party election. 

Mr McDonnell wants to see a “renaissance in British manufacturing” after the UK’s exit from the EU, Labour hopes the speech will lead to a cooperative relationship between the Labour Party and UK enterprise. 

“Our government will create an entrepreneurial state that works with the wealth creators, the workers and the entrepreneurs to create the products and the markets that will secure our long-term prosperity,” he went on to say. 

In response to the speech, Simon McVicker, IPSE director of policy and external affairs said: “The Shadow Chancellor today called for an ‘entrepreneurial state’. Labour shouldn’t forget that to be an entrepreneurial state, you need a flexible economy. This prized flexibility comes from a 1.9 million strong freelance community.”

Mr McVicker went on to say that Labour need to make sure they do not undermine the flexibility of freelance work, stressing that 61 per cent of respondents who go freelance do so in order to control the number of hours they work. 

He emphasised that freelancers contributed £109 billion to the UK economy in 2015 and many of them want to continue operating at a small level and do not wish to upscale. 

However, Mr McVicker praised potential plans for extra workhub funding, explaining that the spaces are crucial for fostering innovation and creativity, as well as helping to bring microbusinesses together to create a collaborative economy. 

With modern technology making it easier than ever before for individuals to start their own company, the idea of freelancing is increasingly appealing and the self-employed will have a key role to play in future elections. 


By Victoria McDonnell

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