PCG and TUC clash over self-employment rise

It's a familiar debate for many of those freelancers presently taking advantage of Guildford accounting firms like Sherwin Currid - is a recent historic increase in the number of self-employed an indication of a weak economy, or a more fundamental change in ways of working? Opposing sides on the matter have been taken by the freelancers' body PCG and the Trades Union Congress.

The TUC, for its part, has rubbished claims that heightened numbers of 540,000 self-employed jobs over the last four years signal a new golden age in entrepreneurialism, claiming that they instead represented "insecure employment" that would "depress pay". In turn, the PCG slammed the union as "backward looking", analysing official figures in an "unhelpful" and "misguided" way. Such words mirror rebuttals of the TUC's claims by the Department for Work and Pensions.

One TUC suggestion, for example, was that while self-employment is a choice for some people, many others were forced into it due to a lack of alternative work. In response, a DwP spokesman told The Times: "There is absolutely no evidence in these figures that people are being forced into self-employment. Small businesses and entrepreneurs are the heartbeat of the continuing success of the country, and as the economy grows these self-starters may well become the employers of the future."

PCG chief executive Chris Bryce also gave the union's claims short shrift, stating that nine out of 10 freelancers recently indicated that they were "happy" with their decision to work for themselves. The trade group's research also showed that 80 per cent of freelancers are pleased with their number of hours and the control that they have over their working life. This contrasted with the TUC's contention that the self-employed route was only so popular on account of insufficient "good quality employee jobs".

TUC general secretary Frances O'Grady had said that "Newly self-employed workers are not the budding entrepreneurs ministers like to talk about. Only a tiny fraction run their own businesses, while the vast majority work for themselves or another employer – often with fewer rights, less pay and no job security." This was accompanied by TUC analysis suggesting that the last few years had actually seen a fall in the number of people starting their own business, despite the rise in the self-employed.

Bryce disagreed, however, describing the increase as "a long term phenomenon that has continued steadily over a number of years through both positive and negative economic periods. It is a structural change in the way we approach the concept of work, not a cyclical occurrence based on an unhealthy jobs market. Not only do self-employed people actively stimulate economic growth, research shows their work also creates the permanent jobs which the TUC purports to be fighting for."

Doubtless, the debate will continue for a while yet - including among many of the clients of Guildford accounting firms like Sherwin Currid, for whom we are committed to providing the very best tax and accounting services.

Editor’s Note: Sherwin Currid (http://www.sherwincurrid.com/) are represented by the search engine advertising and digital marketing specialists Jumping Spider Media. Email: info@jumpingspidermedia.co.uk or call: +44 (0)20 3070 1959 / +34 952 783 637.