Is anyone looking out for entrepreneurs?
Nick Parminter, CEO of design consultancy Class 35, argues that entrepreneurs are being overlooked as the government fiddles again with the growth thermostat...
By Nick Parminter, Chief Exec of Class 35
Rachel Reeves considers raising Capital Gains to 39% as well as scrapping or at least heavily reducing entrepreneurs relief.
At the same time employment reforms will make it harder for businesses to alter headcount under the two years protected employment - as well as not backing down on IR35 and the use of contractors.
All whilst spending £3.4bn on consultants in the public sector, ~70%+ of which on large consultancies (including £650m since labour came into power).
This and the last government have systematically reduced both the ability for small consultancy businesses to respond to market turbulence and the rewards for doing so - whilst handing massive contracts to underqualified generalist large consultants.
Anyone would think they do not want small consultancies to succeed (and are anti-competitive).
When a bunch of career civil servants, theoreticians and class-prefect types talk about growth on a stage at a conference centre using pithy lines like “burdening those with broad shoulders”, you wouldn’t expect the target for those policies to be entrepreneurs trying to create valuable businesses and employment opportunities.
The UK consultancy market is going nowhere other than stale ideas from same incumbents with these policies.
What a joke.
