Reeves promises of ‘pro-business’ government will fall flat without considering self-employed – London Business News | Londonlovesbusiness.com

In her first major speech of a whirlwind election campaign, Shadow Chancellor Rachel Reeves today addressed businesses to set out the Labour Party’s vision for the future.

Taking aim at the government over a tax burden which has reached a 70-year high, as well as the “disastrous” mini-budget, Reeves promised to “start a new chapter for Britain” which would deliver economic growth and stability.

While her speech set out clear commitments to working with businesses and the private sector, there was little focus on the self-employed and the UK’s army of flexible workers – an “oversight” which could hinder her party’s plans to deliver economic growth, according to one self-employment expert.

While Reeves refused to make “unfunded commitments” over freezing income tax rates, the Shadow Chancellor did commit to capping Corporation Tax at its current rate for the duration of the next parliament.

Responding to the Shadow Chancellor’s speech, Seb Maley, CEO of Qdos (tax compliance specialist for the self-employed), said, “Rachel Reeves has made a strong case for business interests today. But while it’s all well and good saying the Labour Party is interested in working with businesses to deliver growth – it’s vital to consider the self-employed as part of any plans.

“On the evidence of today’s speech, however, that seems to be lacking, which is an oversight. The UK’s flexible workforce is crucial to delivering economic growth – to do so, they need to be incentivised with an appropriate tax framework.

“The commitment to cap Corporation Tax at its current rate until the end of the next parliament, and hinting it will be reviewed to ensure the UK remains competitive, is a welcome development – especially for the self-employed who operate through limited companies.

“But that needs to be the first step of a comprehensive rethink of the tax landscape facing the self-employed, who have been hammered by tax hikes in recent years. Only by addressing this issue will a Labour government unlock the economic growth that it wants to achieve.”