Inflation adds to freelancers' business costs

IPSE has responded to the ONS inflation figures for November, which saw the rate increase to 1.2%

IPSE Economist Lorence Nye commented: “Inflation in November was the highest since October 2014, partly driven by an increase in the price of fuel. Freelancers travel further for work than any other group, so this may give them some cause for concern.

“On top of that, there’s been downward pressure on freelancers’ average day rates in the past quarter, with more than half of freelancers (51%) also expecting Brexit to harm their business in the next 12 months.

“These factors combined have informed freelancers’ business outlook for the future, with 62% forecasting an increase in costs in the next year.

“If the trend continues and freelancers’ margins are further squeezed, there will be implications for the wider labour market. Many thousands of companies depend on the flexible expertise independent professionals provide. Without them, companies will struggle to adapt to peaks and troughs in demand.“

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