This is NOT another Angela Rayner stamp duty article
While these issues rightly command the attention given the scale of our global challenges, they've also left a vacuum in domestic debate — and no, I'm not referring to the resignation of the deputy prime minister, Angela Rayner, over not paying enough stamp duty.
Rather, in terms of a vacuum on the domestic front, I'm referring to the absence of support our smallest businesses receive from the government.
Silence on self-employment can speak volumes
With party conference season upon us (the Lib Dems are the first of the traditional 'big three' to kick off proceedings on September 20th), I want to look at what each party is saying — or not saying — about self-employment.
Particularly on our radar as the UK's contractor trade group, are the gaps in self-employment policy commitments that we want to see plugged.
Labour: All eyes on Autumn Budget 2025
It's fair to say that the markets and businesses are jittery at the thought of Rachel Reeves's Autumn Budget 2025. Another black hole in the finances, this time standing at a reported £41.2bn, has only increased speculation that tax rises are on the agenda for November 26th.
The mini and then major reshuffles at 10 Downing Street's behest have only added to the speculation.
What clear signals of tax increases on Nov 26th are we already seeing?
For contractors, the cabinet's personnel changes may seem minor.
But the timing and positions suggest something more strategic — laying the groundwork for tax hikes from Reeves (who, by the way, survived the reshuffle).
Overhauling the government's comms team; putting Reeves' No.2 in charge of day-to-day delivery of government, and appointing a former deputy director of the Bank of England as Keir Starmer's economic adviser.
These are all clear signs that this government is bracing for what is likely to be a tumultuous budget in the autumn, despite assurances to the contrary by the chancellor back in June.
A dividend raid would disproportionately hurt contractor risk-takers
There's also growing chatter that dividends could be targeted on November 26th, which would disproportionately affect limited company directors who pay themselves this way.
As we have continually argued, making dividends more taxing for one-person company owners would be a mistake. These individuals are not passive investors — they are business owners who take on risk, create jobs, contribute greatly to the economy and choose to pay themselves in this way.
Will Labour break its manifesto tax promise to working people?
Penalising directors for how they structure their income would be short-sighted and outright unfair. We'd argue it would also constitute a breach of Labour's manifesto commitment not to raise taxes on working people.
Labour will likely be keen to keep the attention of its conference (September 27th) firmly away from budget rumours. But some reassurance that our smallest business owners are 'working people' would go a long way in easing concern.
What's Labour doing for UK contracting?
Aside from the Autumn Budget, the government is planning a major overhaul of legislation to stop the clients of contractors paying later and later.
Labour has also quietly confirmed that a consultation on employment status rules is in the pipeline before 2026, which has the potential to dramatically alter how we draw the line between an employee and a self-employed person.
We're not expecting to hear any more details at Labour's Liverpool conference on its plans for employment status.
But the government has committed to publishing the details before the end of the year, so there may be soundings taken around the fringes.
Reform UK: Popular in the polls, but still light on policy
Reform continues to poll well, and their conference on Friday and Saturday just gone was their biggest yet.
The party has arguably benefited from their outsider status in Westminster, focusing policy attention on specific areas where they know they poll well.
Reform's economic plan, for instance, remains remarkably thin on detail. And the increased scrutiny they are likely to face if they maintain their favourable polling in the next few days (post-conference) may place added pressure on the party's largely inexperienced party infrastructure.
The 'axe IR35' pledge of Reform UK…
Reform's promise to scrap IR35 (made before 2024's UK general election) has been welcomed by many in the contracting sector, including us at IPSE.
But we are still waiting to hear further commitments that would benefit the self-employed.
With a whole host of fringe events freshly concluded (the most events they've ever put on), their plans for the sector have the best chance so far of materialising into policy.
Conservatives: A party still searching for its purpose
After 14 years in government, the Conservative Party is struggling to reconnect with its traditional base. Many business owners and self-employed professionals have told us they feel disillusioned with the Tories.
The party that once championed entrepreneurship now seems unsure of its direction.
The Badenoch test
The healing process hasn't begun in earnest, and the upcoming conference (October 5-8th) will be a major test of Kemi Badenoch's leadership.
Her keynote speech is expected to be the centrepiece of the conference, especially as rumours swirl about leadership ambitions from Robert Jenrick and James Cleverly.
'Back to basics?' The old Tory moniker is needed on SMEs
Their 'leadership campaigns' in all but name have added a layer of intrigue, but they also risk distracting from the policy work that needs to be done.
The Conservatives need to show they still understand and support the self-employed — and that starts with going back to basics when it comes to their positions on business support, tax, regulation and action to drive economic growth.
Discussions and defections
The fact that the Conservatives are hosting an 'SME Day' at party conference this year does show some intent to put our smallest businesses at the heart of their policy thinking. It will be worth keeping a close eye on what comes out of those discussions.
But with much of the focus on the leadership of the party, and some high-profile defections, we may well have a completely different shadow cabinet and approach to getting their base back on board before the next UK general election.
Liberal Democrats: Still waiting for their time
As party conference season arrives, the Liberal Democrats remain a curious case.
Their 2024 election manifesto showed a level of thoughtfulness on self-employment issues that stood out, particularly their commitments to review IR35 and the Loan Charge.
And many of their candidates showed support for IPSE's Manifesto. It was clear that the Lib Dems had taken the time to understand the challenges facing freelancers and company directors.
The Lib Dems have taken their eye off the self-employed voter
But the tone of political debate in recent months has pulled them into other arenas: immigration, Europe, Gaza. These are important issues, of course, but they've left little room for the Lib Dems to showcase their economic thinking when it comes to the freelance and contractor sector.
We still think that the Lib Dems could make good allies at the right moment. But for that to happen, we need the government to drive the agenda in the right direction first.
Time for Sir Ed Davey to differentiate
Right now, the Lib Dems are a bit anonymous when it comes to their core asks, caught up in the same swirl of reactive politics that has distracted much of Westminster.
Like other opposition parties, Sir Ed Davey's party needs to use conference season 2025 to flesh out their proposals while showing they're serious about reform that can drive growth for both the economy and the self-employed as a population.
IPSE's role
As the party conference season for 2025 unfolds, we'll be watching closely for the self-employed.
We'll continue to speak up for contractors and other workers who work for themselves at every opportunity. We want to make sure that both the government and opposition parties are fully aware of the many challenges currently facing the UK's contracting sector.
We want to see real, actionable policy proposals that would benefit the sector from all of our political parties, and that starts with getting the self-employed and small businesses at the forefront of political discussion again.
We won't rest until that is the case.
Our first big test this conference season is actually Autumn Budget 2025…
It will also be a time for us to champion the impressive contribution of company directors. Therefore, we'll urge the chancellor and her Treasury team to reconsider any plans at Autumn Budget 2025 to target dividend income.
And finally, we must make sure that the incoming employment status consultation understands the importance of sole traders; that any redrawing of the lines between an employee and the self-employed is done correctly, and done in a way that properly recognises our genuinely self-employed, striving and economically significant independent workforce.
