The leaders audition – which party best represents independent

inspiration for independent
professionals and the self-employed
Issue 49 – £4.95
THE X FACTOR
The leaders audition – which party best represents independent professionals? You decide
CONTENTS
A WORD FROM
THE EDITOR
BENEDICT SMITH
The run up to the 2015 general election is well
under way.
We now sit just a few weeks away from the UK’s
most critical political period for the past five years,
yet none of us can be entirely sure which party – or
should I say, parties – might form a government
come 8th May.
So tighten your seatbelts, clue yourself up and
prepare for a period of political slanging matches,
personality and popularity contests, media frenzy
and downright scandal, because this general
election in particular looks set to be a belter.
And for the 4.5 million or so people working for
themselves in the UK, this election promises to be
an important one. Heads removed resolutely from
the sand, the party leaders now realise how important these young and experienced men and women
are to economic prosperity and long-term growth.
Inside this issue – which, dare I say it, is probably the most prestigious IPSE Magazine yet – we
gave each political leader the opportunity to
present themselves to you as the best party for
the self-employed.
I’m sure you’ll find what they had to say just as
interesting as I did.
3
ISSUE
49
CONTENTS
04
05
05
A Message from the CEO
Chris Bryce
IPSE Futures –
What you need to know
A Message from Mercer –
Kim Honess
06
13
14
General Election
Spotlight: X Factor
General Election
Spotlight: Analysis
General Election:
The IPSE Policy Pillar
16
18
21
Simon McVicker on
the IPSE Members Poll
SNP success could be
Labour’s Groundhog Day
Ben Wright looks at
the EC’s latest plan
22
25
26
Tech City Oxford –
Benedict Smith
What the election
means for contractors
Computer Club –
Caroline Baldwin
29
30
33
Reputation and Brand –
Daniel Farey-Jones
The Freelancers
Guide to Paris
Stu Heritage –
Plainly Speaking
34
36
38
Hub Spy –
Uber Office
The Network Effect
Members’ Diary
Enjoy the magazine.
Benedict Smith
[email protected]
@BENSMITHIPSE
A MESSAGE FROM THE CEO
4
A MESSAGE FROM
THE CEO
CHRIS BRYCE
Issue 49 – £4.95
With IPSE Futures now available to all
members, Chris Bryce explains how one
of IPSE’s biggest benefits came about.
Like many traditional contractors out there, I’ve sat in
client offices alongside permanent employees and
watched them select their benefits each year, often wondering what these ‘benefits’ were actually made up of.
And during this yearly occurrence I’d sit back in my
chair and ask myself why, as a one-person limited
company, I wasn’t able to access pension plans, life
assurance and many other flexible benefits at similar
rates to those of permanent employees. In the past I’d
punched my details into various online marketplaces
for life assurance and other such things and had been
taken aback at how expensive it was.
Luckily, I have a friend who is quite senior in what’s
known as the ‘flexible benefits’ industry so, naturally,
I began badgering her about it. She argued that oneperson limited companies were too small to deal with,
the processes weren’t in place and that it would cost a
fortune for all parties involved.
IPSE IS THE FIRST ORGANISATION TO DO
SOMETHING LIKE THIS FOR NANO-BUSINESSES
Not one to take no for an answer, I went shopping. I
began researching companies IPSE could work with
to offer members the same flexible benefits that a large
employer was able to extend to its employees. Two or
three companies were keen to work with us but, to be
honest, they were far too expensive. Several others just
weren’t interested in dealing with what they saw as
21,000 individual people.
But we didn’t give up. I continued to speak to my contact
at Mercer (global consultants in talent, health, retirement and investments.) We eventually partnered with
them and with their help put together a package which
includes a pension scheme, life assurance and private
medical insurance, available to all IPSE members.
It must have taken around a year from the first pen to
paper to make IPSE Futures happen. But we have now
inspiration for independent
professionals and the self-employed
Issue 49 – £4.95
reached a point where everything is in place to give our
members access to heavily discounted rates for a range
of flexible benefits, which we will be adding to in the
coming months.
IT’S SIMPLE TO JOIN, WHICH WILL NO
DOUBT BE MUSIC TO YOUR EARS
We’re pretty sure that IPSE is the first organisation to
do something like this for nano-businesses, and because
of that it has been a difficult journey. But it’s one that
I strongly believe has been very worthwhile. As contractors we’re often left on our own when it comes to
looking after ourselves and I was determined that IPSE
should make that a little easier for us.
Working for yourself doesn’t guarantee a fixed income
each month from which you can make a pension contribution or pay a life assurance premium. But with
hugely discounted rates and offering reasonable
flexibility to dip in and out of paying for these things,
I think IPSE Futures is one of the most important
benefits that we have put in place since we arrived on
the scene in 1999.
It’s simple to join, which will no doubt be music to your
ears. All we need from you is a few details, which will
be passed on to the providers securely before your
account is set up automatically.
IPSE collects the premiums and the pension contributions before we send them across in their entirety
to the respective providers once a month. If you need
further help, the IPSE Membership Team is fully
briefed, on hand and happy to help.
I should stress, however, that this scheme and the various benefits we offer might not suit everybody and that
you should always take independent financial advice
before making any investment or insurance decisions.
Visit the IPSE website for any further information and
to join – ipse.co.uk/futures.
the X faCtor
The leaders audition – which party best represents independent professionals? You decide
EDITOR
Benedict Smith
[email protected]
@BenSmithIPSE
MEDIA CONSULTANT
Jim Cassidy
CONTRIBUTORS
Jim Cassidy
Stu Heritage
Caroline Baldwin
Ben Wright
FRONT COVER DESIGN
Owen Thomas – IPSE
ADVERTISING
[email protected]
PUBLISHED BY
IPSE, Heron House,
10 Dean Farrar Street,
London SW1H 0DX
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ENQUIRIES
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ipse.co.uk/join
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@IPSEmag
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IPSE FUTURES
5
IPSE FUTURES
WHAT YOU NEED TO KNOW
IPSE members now have the opportunity to take
advantage of group rates for a variety of benefits.
We’ll be adding to these throughout the year,
but you are now able to join pension, life assurance and private medical insurance schemes at
group rates, usually at a fraction of the cost you
would pay as an individual.
IPSE PENSIONS
We know just how important it is to save for your
future. That’s why we’ve chosen to work with
Aegon Retirement Choices to give members
the opportunity to join a pension plan with a
negotiated charge of just 0.42%.
Offering greater flexibility and giving members
more control over their savings than many other
products on the market, IPSE Futures’ pension
scheme has been designed with the self-employed
in mind.
Bringing savings together online and in one
place, those who use the plan can keep a closer
eye on their savings, while making more
informed decisions on how much they’d like to
put away each month.
With a wide range of other product wrappers such
as an ISA and a general-purpose investment
account, IPSE members who sign up for the
scheme will have access to a variety of investments
from one of the world’s most respected providers.
IPSE LIFE ASSURANCE
We are also delighted to now offer our members
voluntary life assurance, again at much lower
rates compared with the retail market, through
Legal & General, starting at just £2.80 a month
for £50,000 of cover.
You can choose how much cover you’d like in
£50,000 increments, up to the maximum benefit
of £250,000. Voluntary life assurance cover will
pay a lump sum if the person taking the cover
were to die, and it’s a valuable benefit that can
help families and dependants financially.
All IPSE Plus members will automatically
receive £5,000 life assurance cover included as
part of their Plus membership.
IPSE FLEXIBLE BENEFITS
Our private medical insurance with Mercer
gives IPSE members prompt, efficient access
to healthcare with no NHS waiting lists, at a
substantially lower cost than other products
out there.
Registration and all payment collection are
handled directly by independent consultants
Mercer, who will advise those who sign up to
the scheme on the best healthcare cover, and
provide them with:
• Access to discounted rates
• Specialist help and advice
• Access to coverage that may not
exclude previous medical conditions
• Support available as and when it’s needed
We’re looking forward to informing you about
a range of further flexible benefits in the
coming months, and helping you to prepare
for tomorrow.
IPSE strongly recommends that appropriate
expert independent advice should be obtained
before making any investments or other investment decisions.
A MESSAGE
FROM MERCER
Despite the size and, who could forget,
the undeniable importance of the UK’s
contracting and freelancing community,
it’s surprising that nobody has been able
to offer a range of flexible benefits to a
group of solo workers before – flexible
benefits and ‘group rates’ are usually the
reserve of large companies and even the
smallest customers usually have at least
50 employees.
In all my years in the industry it had never
been viable to put together an offer like
IPSE Futures. Then, over a glass of wine,
Chris suggested that we should stop looking
at IPSE Members as 21,000 individual
businesses and start thinking about them
in a different way – as 21,000 members all
under IPSE’s virtual roof. I’m paraphrasing,
but this was the point which turned out to
be the eureka moment. Thinking that way
might allow us to build a workable proposition for IPSE and that’s when I ‘got it’ – we
could maybe, just maybe, work with IPSE
to build something worthwhile and exciting
for its members. We opened another bottle
of wine and began chatting about how Mercer could work with IPSE to bring a range
of flexible benefits to IPSE members at
prices which weren’t going to break the
bank. From that glass of wine, right through
to the launch day, it’s taken over a year to
get IPSE Futures up and running. But you
know what they say – nothing worth having
ever came easy!
For Mercer, the introduction of IPSE
Futures marks the start of a really exciting
journey. When I say IPSE Futures is a
groundbreaking development, I’m not
overstating it. Nobody has crossed this
bridge before. It speaks volumes about
IPSE’s commitment to making the UK a
better place for those working for themselves. We’re thrilled to be working with
IPSE and looking forward to providing an
increasing range of flexible benefits for
IPSE members.
So, here’s to that glass of wine, Chris!
KIM HONESS
Head of Flexible Benefits, Mercer
Mercer is a global consulting leader in
talent, health, retirement, and investments
GENERAL ELECTION SPOTLIGHT:
THE CONSERVATIVE PARTY
PM’S VOTE OF CONFIDENCE
IN SELF-EMPLOYED REVOLUTION
Prime Minister David Cameron tells IPSE’s media adviser Jim Cassidy about his respect
for the growing army of go-getters.
It takes some people a lifetime to climb the Grand
Staircase in Downing Street. From the custard
yellow walls, history looks down on you with
every step you take, as Prime Ministers from
1735 onwards glower at you as though asking
why you’re there and what’s your business. Pause
and you can almost hear them whisper: “Who
goes there? Friend or foe?” Others bound up the
stairs with speed and authority. David William
Donald Cameron is one such speed merchant.
He has an election to fight; a hundred constituencies to visit; thousands of potential voters to
meet; over a million hands to shake. When he
first entered 10 Downing Street as PM on 11th
May 2010, there were those ready to dismiss him
and his inner circle as the 21st-century reincarnation of Lord Snooty and his pals. Out of touch,
out of their depth and out for themselves. That
was the disparaging cry from some quarters.
Five years on, many realise how wrong they
were. When he first raced up these stairs as PM
he was just 43, the youngest Prime Minister in
nearly 200 years. Perhaps it was that heady
cocktail of youthful exuberance, conviction and
a determination to turn the country’s economy
around that has made him so driven. But five
years on, this tall, confident communicator
believes much has been achieved, but knows
the job is only half done.
THE SELF-EMPLOYED ARE A KEY
PART OF OUR LONG-TERM ECONOMIC
PLAN FOR THE COUNTRY
Throughout his term, his main focus has been
the economy, the economy, the economy and the
one sector that he has never stopped talking-up
is the growing army of independent professionals
and the self-employed. So what better place to
start with questions for the PM than to ask him
why he has championed and put his full political
weight behind supporting this sector.
“I have huge respect for those who leave the comfort of a salary, strike out on their own and try to
build something from scratch. And there has
never been a better time to do that. Technology
is allowing more people to set up fast-growing
businesses from their homes and new business
models are allowing large firms to emerge without having to employ people directly.
“These positive factors have driven a large rise
in self-employment – part of the 1.85 million
extra jobs created since 2010 – and are a key part
of our long-term economic plan for the country.
That’s why we have changed the tax system to
WILL DAVID CAMERON STILL
BE AT NO 10. ON 8TH MAY?
7
support the self-employed, clamped down on
late payment, set up schemes like Start-up Loans
and liberated sole traders from needless regulations like health and safety, which had been
designed for larger businesses.”
Some experts expect the number of those selfemployed to overtake the number of those working in the public sector in the next few years.
What’s your message to the self-starters and
go-getters thinking of starting this journey?
“Go for it. There is an army of self-starters on
the move across Britain’s economy, working in
almost every sector, every region and all age
groups. There has never been a better time to
start a business, and I want that to remain the
case after the election with a business-friendly
government, led by me, that does everything it
can to back enterprise.”
More and more women are choosing to start their
own micro businesses, sometimes for economic
reasons and often for a better work/life balance;
an extra 77,000 from the end of 2013 to the end
of 2014. IPSE has called for maternity benefits
to be introduced for women in this sector; while
this has received a degree of encouragement from
your party, is this something your government
would pursue if they are returned to power?
“We have taken steps to help the self-employed
enjoy the benefits that would normally only have
accrued to the permanently employed. For example, our plan for tax-free childcare will be
accessible for the self-employed, which isn’t
currently the case. I am very keen to look at other ways that we can offer support and I know that
maternity benefits is one area of concern.”
Many within this sector believe that IR35, introduced by Labour in 1999, was not only cumbersome, but ill-thought-out and unworkable. If
returned to power, would your government revisit this legislation and ensure that fairer, more
transparent tax guidelines are introduced for the
self-employed?
“I appreciate the concern over IR35 and that is
why I asked HMRC to improve the way in which
it is administered. They have now published new
guidance to help provide contractors with greater certainty about the likelihood of an HMRC
investigation for IR35 reasons and we have set
up the IR35 Forum to include HMRC, taxpayer
representatives and professional advisers, including IPSE, with expert knowledge and experience
of how the legislation operates in practice.”
Among 85% of small businesses, one of the main
gripes is the issue of late payments, from both
the public and private sectors. Late payments
cause cash flow problems that put an added
burden on this sector. Your government has
made strides in this area, but would you like to
see the Prompt Payment Code get more teeth?
IPSE has suggested a small business conciliation
service, again something Conservative Ministers
seem to be attracted to.
“Tackling late payment has been at the forefront
of our work and we are taking a number of steps
to help small firms and the self-employed. We
are rewriting the Prompt Payment Code so that
30-day payment terms are to be the norm of
acceptable behaviour in the UK, with 60 days
as the maximum in all but exceptional circumstances. This revised Code will have teeth, with
a new enforcement body that will be able to eject
companies that fail to live up to the new standards, and potentially with the power to levy fines.
“From the beginning, I have insisted that the
Government pays promptly. I’m pleased to say
that all Government Departments meet the target of paying 80% of undisputed invoices within
five days and all others within 30. Finally, I have
made a commitment that if I win the election I
will set up a version of Australia’s Small Business
Conciliation Service, as suggested by IPSE.”
I WILL SET UP A VERSION OF AUSTRALIA’S
SMALL BUSINESS CONCILIATION
SERVICE, AS SUGGESTED BY IPSE
IPSE members come from the four corners of
the UK, but members in the Isle of Dogs might
have 10 times faster broadband than a contractor
on the Isle of Wight or 100 times faster broadband
speed than a freelancer on the Isle of Skye.
Is the superfast broadband programme being
rolled out quickly enough to ensure that the
self-employed are competing in the UK, EU
and international marketplaces?
“Getting fast broadband is crucial for a modern
economy such as ours, which is why we have
invested over £1 billion in better broadband
and mobile infrastructure. We are now the top
of the five largest European economies for
broadband and mobile coverage, take-up, use,
choice and price.
“Superfast broadband, 24Mbps and higher, is now
available to 75% of UK premises and the programme is on track to provide 95% of the population by 2017. Best of all, over 10,000 SMEs have
taken advantage of broadband vouchers, worth up
to £3,000 each, to get connected and the scheme
will extend to provide up to 25,000 vouchers.
KEYFACT
OVER 10,000
SMEs HAVE TAKEN
ADVANTAGE OF
BROADBAND VOUCHERS
“What’s the outcome of all this? Dramatically
higher speeds – with people able to use the internet more than three times faster than in 2010.”
At the end of last year you invited the winners of
our search to discover Britain’s talented go-getters
into No. 10. I know you were impressed by their
energy, talent and determination to go out on
their own. Do you think the winners of this contest reflect the growing change in how we as a
society and a nation view the self-employed?
“Rebecca was a very worthy winner – her exhibition design business shows that you can be a
successful freelancer in every field and in every
part of the country. In fact, that is true of Sarah
and Andrew too – a nurse and a cameraman.
Many years ago people would have thought these
were jobs only available in large corporations
like hospitals and the BBC. But that’s no longer
the case – and shows how freelancing has
changed for the better.”
When the country goes to vote on 7th May
David William Donald Cameron will have been
PM for 1,823 days. He has indicated that, if
re-elected, he will stand down at the next election.
Now that really is 20/20 vision for you!
The British public will determine whether it is
a matter of a few weeks or a matter of five years
before a new space will have to be found for a
portrait of David Cameron on the custard yellow
walls of No. 10.
You get the impression there will be no glowering from this Prime Minister, but perhaps the
hint of a smile from a man who, even if he sees
through another term, will only be 54.
Plenty of time to join the self-employed army!
WHICH WAY WILL YOU BE VOTING
ON 7TH MAY? LET US KNOW
@IPSEMAG
GENERAL ELECTION SPOTLIGHT:
THE LABOUR PARTY
Despite repeated requests, Labour Leader Ed Miliband
decided not to take up IPSE’s offer to outline his views
on the UK’s 4.5 million self-employed. In the Labour Party’s
recent document A Better Plan for Britain’s Prosperity,
Ed Miliband restricted his party’s thoughts on this
growing and influential community to 17 words:
“The rise of self-employment could
in part be evidence of growing
insecurity in the labour market”
A Better Plan for Britain’s Prosperity
As an apolitical organisation, IPSE was keen to offer
a platform to all the main political party leaders.
8
GENERAL ELECTION SPOTLIGHT:
THE LIBERAL DEMOCRATS
HARNESS TALENT
AND INGENUITY
A new tax system to boost the talented people that make-up IPSE.
Everything in the garden was rosy when the Ant
and Dec of politics stepped on stage for their
‘live at Downing Street’ gig.
that is flexible, family-friendly and inclusive. We
need to harness the talent and ingenuity of all
our people, not just a few at the top.
They brought the house down that sunny afternoon five years ago when Prime Minister David
Cameron and Nick Clegg, now Deputy Prime
Minister, outlined their vision for the first coalition government for 65 years.
If you want a glimpse of the sort of worker that
will thrive in the new economy, you need look
no further than the growing number of self-employed professionals – the freelancers, contractors and consultants that IPSE represents.
Highly educated, innovative and flexible, and
drawn from across society – almost as many
women as men, highly motivated recent graduates as well as experienced older professionals,
independent yet highly networked, operating
from rural hamlets to the busiest urban centres.
But how had the Liberal Democrats with only
8% of the Westminster MPs reached such power around the Cabinet table; five Secretaries of
State and their party represented at every
level of government? In a word: necessity.
WE MUST CONTINUE TO INVEST IN OUR
VITAL INFRASTRUCTURE – THE PHYSICAL
AND DIGITAL CONNECTIONS THAT ARE THE
ARTERIES OF OUR ECONOMIC SYSTEM
In reality, this marriage of convenience was a
success, but will there be a five- year hitch when
the UK votes on 7th May? Or will we witness a
Nick and Dave Westminster encore? Only the
voters can decide that one…
BY THE DEPUTY PRIME MINISTER NICK CLEGG.
When I led my party into government five years
ago, I did so for one reason above all others: to
help rescue, repair and reform the British economy, and to put it on the path to balanced and
sustainable growth.
If more people are to enjoy the rewards of working as an independent professional – and more
businesses and public sector organisations are
to benefit from their input – the first and most
important task for government is to ensure a
constant flow of highly skilled workers. That’s
why the Liberal Democrats have made education – and protecting the education budget – our
first priority, investing in pre-school education,
driving up school standards, closing the attainment gap between advantaged and disadvantaged children, creating almost 2 million new
apprenticeships for school leavers and getting
more young people (and more disadvantaged
young people) into university than ever before.
The second task is to ensure that the labour
market reflects the realities of modern Brit-
Five years on, that journey is now well advanced,
though not yet complete.
The deficit has been halved, almost 2 million
jobs have been created and living standards are
once again on the way up – all testament to the
fact that Britain is now the fastest growing major economy in the world.
If Britain is to earn its way in the world in the
coming decades, we need to work differently –
inventing, creating, innovating and producing.
And to support these aims, we will need a
world-beating education system, a tax system
that promotes work, a regulatory framework that
supports entrepreneurship, and a labour market
©James Gourley
9
ain in which more and more people work
flexibly or remotely, while balancing their
professional and family responsibilities. That
is why we have invested heavily in childcare
provision – with 2 million families eligible
for our new Tax Free Childcare scheme and
1.6 million 2-, 3- and 4-year-olds now receiving 15 hours of free childcare each week. And
it’s why my party is committed to extending
this free entitlement to all 2-year-olds and
1-year-olds too, so we have a seamless system
that starts at the end of our new year of
‘Shared Parental Leave’.
The third task is to ensure that the regulatory
and tax environment is as pro-business as possible. That is why we cut vast swathes of red
tape, delivered a £900 income tax cut to 26
million people, brought corporation tax down
to the lowest level of all our main competitors,
and provided billions of pounds of Business Rate
Relief for small businesses.
And it is why, finally, we must continue to
invest in our vital infrastructure – the physical and digital connections that are the arteries of our economic system. My party will
complete the roll out of high speed broadband to 99% of the UK, connecting people
to the world wherever and however they
choose to work.
Liberal Democrats are forward looking and
passionate about harnessing the talents of all.
For many, work in the future won’t be about
sitting at the same desk in the same company
from 9 until 5. A stronger economy and a fairer society demand modern workplaces and a
culture that supports people in the choices
they make. Self-employed and independent
professionals must be at the heart of the next
government’s agenda.
GENERAL ELECTION SPOTLIGHT:
THE SNP
10
The evidence shows that we have made progress,
despite the exceptionally tough economic
climate of recent years. Scotland’s economic recovery is now well established: our economy has
grown continuously for two years, GDP is above
pre-recession levels and the economic outlook is
the strongest it has been for many years. Scotland
is also continuing to outperform the rest of the
UK on employment and inactivity rates, with
female employment showing particular progress.
SELF-EMPLOYED KEY TO
SCOTTISH PROSPERITY
SNP pledge their support to independent professionals.
The thought of Alex Salmond and a band of
Scottish political warriors storming down the
A1 like a scene from Braveheart might have Dave
spluttering into his muesli and Ed waking up in
the dark of night in a cold sweat. But keep calm,
relax boys; their leader is staying in Edinburgh.
Nicola Sturgeon is now the political Queen of
Scots and it will be she who moves the pawns,
the rookies and the king after the general election in what will be the most intriguing political
chess game ever seen in the UK.
Underestimate this highly intelligent and articulate 44-year-old former lawyer at your peril. Gone
is the natural shyness, to be replaced by poise;
gone are the commonplace clothes, to be replaced
by stunning power outfits; gone is the confrontational style, to be replaced by a warmer, more
engaging personality; gone is the habit of looking
over her shoulder for party consensus, to be replaced by a composure that says: “I’m in charge.”
Her relationship with former leader and prospective MP for Gordon, Alex Salmond, is like
a father–daughter bond born out of respect and
affection. Cynics may question if it will survive
the next five years; those who know them are
convinced it will.
There was a time when an argument with Nicola might have ended with the equivalent of a
‘Glasgow kiss’ and a withering look that would
have made grown men go weak at the knees. As
many IPSE members found when she spoke at
one of our meetings, it is now a warm smile and
an even warmer goodbye.
BY NICOLA STURGEON, FIRST MINISTER
OF SCOTLAND.
When I met with IPSE members late last year,
I was struck by their enthusiasm and their
appetite for success.
I recognise entrepreneurs, freelancers and the
self-employed are key drivers of sustainable
growth in Scotland, with freelancers working
across a range of industries, including oil and
gas, finance and IT.
The success of Scotland’s business sector
underpins the prosperity and wellbeing of every
community in Scotland. It is vital for me and the
Scottish Government to work closely with you
to help you succeed – and I intend that we do so.
My government will be enthusiastic in our support for jobs and business, and my door will
always be open.
Since 2007 we have used the powers that we
have to support businesses in Scotland and have
established the most competitive business taxation system in the UK. Our package of rates
relief will be worth more than £600 million next
year to companies across Scotland. The small
business bonus will help almost 100,000 of our
smallest enterprises – and we are committed to
maintaining this relief throughout the next
Scottish Parliament.
I recently launched the Scottish Government’s
refreshed Economic Strategy which sets out
how we can create a stable and balanced economy that is outward-looking, confident, innovative, based on the core strengths of our
people and supported by investment. We have
significantly reduced the gap in productivity
between Scotland and the rest of the UK; I now
want to see Scotland match the productivity
levels of the strongest economies in Europe. I
also want to see more women getting into leadership roles in business and break through that
glass ceiling – our refreshed Economic Strategy will support this ambition. If as many
businesses in Scotland were owned by women
as are currently owned by men, it could boost
our GDP by as much as 5%.
I also believe that in each of the key areas of
innovation, investment, growth and internationalisation there are functions that remain at
Westminster which could help us to achieve
more and better jobs in Scotland if we exercised
these powers here – and would boost competitiveness and tackle inequality.
WHEN I MET WITH IPSE MEMBERS LATE LAST
YEAR, I WAS STRUCK BY THEIR ENTHUSIASM
AND THEIR APPETITE FOR SUCCESS
But where the Westminster Government still
holds key economic powers, it must take the
right decisions to support Scotland’s economy.
In particular, while we welcome the tax U-turn
by George Osborne on the North Sea industry,
where many freelancers and contractors work,
it is essential that work is now focused on boosting investment and growth.
Scotland’s growing self-employed community
now stands at 273,000 and the Scottish Government will encourage their ability, determination, vitality and passion to succeed. My
pledge is that the Scottish Government will
always support Scottish businesses, and take
actions to boost jobs and competitiveness and
to tackle inequality.
GENERAL ELECTION SPOTLIGHT:
UKIP
Many of IPSE’s members have suffered from
obvious barriers when seeking to access finance
and enter into protracted procurements processes. Unlike the UK’s largest firms, which
often have international footprints, the smallest firms and the self-employed do not benefit
from the economies delivered from in-house
legal, compliance and regulatory teams. In
UKIP, we believe that the UK’s 4.5million
self-employed are our greatest innovators who
deserve the support of, not interference from,
the state.
WE WOULD
BOOST
THE SELF –
EMPLOYED
European exit and late payment
legislation would help freelancers.
There were few newspaper headlines when
Nigel Farage walked out of the Conservative
Party in 1992 when John Major’s government
signed the Maastricht Treaty, but since then
Nigel has been making headlines daily and there
are many who believe he might still be making
them on and after 8th May.
Nigel Farage was one of the founders of the UK
Independence Party, UKIP to you and me, in
1993, becoming a Member of the European
Parliament in 1999 and leader of the party from
2006 to 2009 and again since 2010. The 51-yearold, who famously enjoys a fag and a pint, is
standing at the general election in South Thanet
and has gone on the record as saying that he
would have to stand down as UKIP leader if he
were to lose.
THE UK’S 4.5MILLION SELF-EMPLOYED
ARE OUR GREATEST INNOVATORS
His final school report said: “Dulwich College
would be a poorer place without this boy’s
personality. If elected, we’ll see what Westminster thinks.
BY NIGEL FARAGE, LEADER OF UKIP:
UKIP has been looking at the problems faced
by the self-employed and at those things that
hold you back.
I agree with IPSE that the scourge of late payment is one of the greatest problems facing independent professionals and the self-employed
up and down the country. It often feels that late
payment and delays in payment are not merely
a question of laziness, but are acts of deliberate
malice. Late payment, more than anything,
shows that the banks are wary of financing
independent enterprises.
11
UKIP believes that some obvious steps can be
taken to correct the £20 billion that is locked
up at any one time by large companies. First, we
would introduce an evidence scheme for repeated late payment offenders, as well as proof that
timely requests for payment have been made.
This information could then be passed on to
HMRC if a large company is found to systematically exceed its contractual terms of payment
with small businesses, whereby a significant fine
can be levied by HMRC. This would be proportionate to the extent of the abuse of terms.
Further, UKIP believes that another way to
free up the self-employed and small businesses is by ending the exploitative lending practices of the largest firms. This would include
an end to the practice of large companies
extending their payment terms to small firms,
by arranging for their supplier to take out a
bank loan to meet their demands. It is fair and
right to introduce these changes and shows
that UKIP will always be on the side of entrepreneurs and the self-employed.
The current system for business rates in the UK
is wholly inadequate. It’s unfair to the selfemployed, confusing for policy makers and
unjust for taxpayers. Business rates can be prohibitively high, which is further worsened by
arbitrary changes that come out of Brussels.
Like IPSE, I believe that the self-employed who
want to expand and collaborate – in shared
workspaces, for instance – deserve far less interference from government than is currently
the case. Support for these aims can be introduced in the following ways.
UKIP would change the Small Business Rate
Relief scheme to make it far more equitable. Rather than the current low cut-off points for relief, we
would introduce 20% relief for one property that
has a rateable value of less than £50,000.
Changing access to government procurement
projects is one place to start. With the growing
trend to tender government services, there
have been too many examples of over-generous
PFI projects going to incompetent multinationals and conglomerates unable to tailor
their service to taxpayers. UKIP would address
the unfair advantage the largest firms have by
removing the necessity for Britain’s smallest
firms and independent professionals to
demonstrate compliance in areas irrelevant
to the job that is being tendered for. This would
benefit the smallest companies and cut costs
for the taxpayer.
In order to free up the tendering process for
self-employed business people, we will introduce a scheme that builds on the Funding for
Lending Scheme and the Finance Guarantee.
This new trade credit insurance scheme would
mean that the government backs a portion of
the risk to enable cover to be provided more
widely. This would have the effect of giving
Britain’s smallest businesses the confidence to
expand trade as well as to focus their energy on
private and public procurement contracts.
THE CURRENT SYSTEM
FOR BUSINESS RATES IN THE
UK IS WHOLLY INADEQUATE
Most significantly, the burden of employment
regulation is the most punishing on those who
generate wealth. A recent report said that 61%
of small companies cite the regulatory burden
as a significant factor when closing or downsizing. Regulations must be clarified, aligned
or removed. By extricating ourselves from the
EU, UKIP believes that the 90% of British
businesses which do not trade with it will benefit hugely from the removal of onerous and
unnecessary limits on ambition.
GENERAL ELECTION SPOTLIGHT:
THE GREEN PARTY
GIVING SELF-EMPLOYMENT
THE GREEN LIGHT
Maternity payments, better internet and the right work/life balance.
12
ing to apply equal pay and anti-discrimination
legislation to contracts between businesses; ensure contracts provide compensation to be paid
for by the organisation employing another, should
contracts be revoked prior to work taking place;
and make unemployment pay available to the
self-employed on equal terms to employees.
WE WILL ENSURE SELF-EMPLOYED
PEOPLE CAN CLAIM ABSOLUTELY
EQUAL RIGHTS WITH EMPLOYEES
Maternity and paternity leave are further matters
on which we believe employees in the UK receive
a raw deal. But it is completely unacceptable that
even within that deficient provision, self-employed
parents should be treated even less reasonably.
England’s green and pleasant land could take on
a whole new meaning if the dreams of Natalie
Louise Bennett become reality on May 7th.
The Australian born leader of the Green Party of
England and Wales believes this is their time. The
feisty 49-year-old became leader of the party in
2012 after the party’s only MP, the high-profile
Caroline Lucas, stood down voluntarily.
With around 60,000 members, the party hope
that those disillusioned with mainstream parties
will turn away from the economy, economy,
economy mantra and instead shift their focus
onto the environment.
Natalie survived a ‘car-crash’ of an interview
with Nick Ferrari when she froze over the issue
of housing costs, but as of yet no one has evaluated the damage done to her party.
NATALIE BENNETT, LEADER OF THE GREEN
PARTY OF ENGLAND AND WALES*
With more than 4.5m people, self-employment
is vital to the UK economy. Whether innovators
working to provide new services or products,
freelancers combining work for many people
with looking after children, or people taking
advantage of technology to work in the way that
suits them best, one thing all workers in this
growing sector face is the fact that the law has
been too slow to catch up with their needs.
This sector is an excellent fit for the Green
Party: we stand for the rights of small busi-
nesses ahead of larger corporations, for strong
local economies within which money can
productively circulate, for those who want to
work in innovative ways on new ideas, and of
course for people utilising technology to avoid
unnecessary travel.
THE PROMPT PAYMENT CODE IS FAILING
TOO MANY PEOPLE IN THE UK
Green MEP Molly Scott Cato has been at the
forefront of the campaign to change new European VAT rules on the sale of digital products,
making the tax chargeable in the place of purchase
rather than supply, forcing all businesses to collect
VAT from up to 28 different states at different
rates. Molly has called for an exemption for businesses with a turnover of less than 100,000 euros.
Late payment is also a huge issue for small businesses and the prompt payment code is failing
too many people in the UK: late payments are
the leading cause of business failure. At the end
of 2014, SMEs in the UK were owed a combined
£39.4bn. It is a key issue of ours to legislate to
ensure the self-employed are paid on time.
We are also focused on securing affordable business and work spaces for small businesses. I’ve
seen many such exciting spaces around Britain
and we are committed to supporting them all.
We are the UK’s only major political party pledg-
We will ensure self-employed people can claim
absolutely equal rights with employees in other
sectors, based on their average income and hours
of work. For those with young children, we want
to offer flexibility and freedom from crippling
childcare costs, with free care covering school
hours for children aged one to five.
We are committed to empowering local authorities to set local business rates, and give them the
power to set rent control for the premises of small
enterprises. We will also be working with local
authorities to encourage innovative measures
such as cutting business rates for premises used
by two or more organisations or enterprises.
Despite the promises of successive UK governments, too many regions of the country suffer
from insufficient internet access. We’re making
a manifesto promise to oblige BT to provide
affordable, high-speed broadband-capable infrastructure for every small business, and to
make it available to all rural areas at the same
cost as in urban areas.
We are committed to innovation, as well as to
an end to the politics of ‘business as usual’. This
is most often applied to our commitment to
change the way politics works, who it works for,
and the outcomes of that work.
It is also excellent to be able to write this piece
for IPSE members. The Green Party, like you,
is committed to new ways of doing business.
With your support on 7th May, we can help make
it easier for you to do so.
*Information about the Green Party of Scotland
and Northern Ireland can be found at:
www.scottishgreens.org.uk
www.greenpartyni.org
GENERAL ELECTION SPOTLIGHT:
ANALYSIS
13
WHO WILL TRIUMPH IN
WESTMINSTER’S GAME OF THRONES?
Game of Thrones is a dark, brutal tale of tribes fighting for supremacy in a
medieval and far-away fantasy land, writes Editor, Benedict Smith.
With plotlines filled with lies, deceit, lust and
violence, it is an epic with more twists and
turns than your average corkscrew, as each
episode enthrals millions of TV viewers
around the world.
And we should prepare ourselves for more of the
same back in the real world as we draw ever closer to the 2015 general election – Westminster’s
very own Game of Thrones. Come 8th May, who
will have won the war and inherited the most
powerful role in the land? Cameron or Miliband?
FOR THOSE WHO LIKE TALES OF
FANTASY, THIS IS THE ELECTION
TO END ALL ELECTIONS
And as the UK’s two great political armies don
their armour before charging into battle, could
the Queen of the North, Nicola Sturgeon, and
her loyal foot soldiers cause a diversion?
Or could it be that the upstart from the East, the
undisputed King of Controversy, Nigel Farage,
might have a say in the final outcome?
For those who like tales of fantasy, this is the
election to end all elections. Until the next one,
that is…
But what about the facts, and more to the point
what does all the political posturing mean for
IPSE members?
Well, as we go to press, facts are thin on the
ground with most party manifestos scheduled
for mid to late April. Without the manifesto
pledges, we can’t be certain what each party
plans to do if in a position of power, but we
certainly get a good flavour from the myriad
speeches, dozens of policy papers and the conferences in recent months.
IPSE’s policy team has been on a mission to
make the case to all policymakers about the
vital role that independent professionals play
in Britain. These are the people who are vital
to the economy, holding the key to future
growth, and there has been no let-up from IPSE
in emphasising this.
The result of this hard work saw the Conservatives take up IPSE’s proposal late last year
to back a conciliation service to resolve payment disputes. This has not gone unnoticed
by other parties either. As you will see in the
magazine, Labour, the Liberal Democrats, the
Green Party and UKIP have pledged to tackle late payment too.
The hotly debated issue of zero hours contracts
is also high on the political agenda, with most
parties looking to clamp down to various degrees.
And as we turn our gaze to taxation, the differences between the parties become clearer,
although disappointingly no party has made
a strong commitment on IR35. The Tories
plan to keep corporation tax at 20%, while it’s
widely expected that a Labour government
would raise the level to 21%. Ed Miliband has
also pledged to reintroduce the 50% rate of
income tax should he win the keys to Number
10 next month.
Should the UK public vote Cameron in for his
second term as Prime Minister, the Conservatives
have made a promise to scrap Class 2 NICs, while
also increasing the threshold at which point taxpayers fall into the 40% income tax bracket.
We are very proud of our apolitical status at
IPSE, and our members are spread far and wide
across the UK, experts in what they do and crucial to Britain’s long-term success. Whether they
have deeply held political views or are politically agnostic matters not.
EVERYTHING HANGS
TENTATIVELY IN THE BALANCE
We are delighted that the Prime Minister, the
Deputy Prime Minister, Scotland’s First Minister and the leaders of the Greens and UKIP have
taken the time to reach out directly to the UK’s
independent professionals. It reflects the growing importance of the self-employed and also
the growing influence of IPSE. That the leader
of the Labour Party has not done so is a disappointment, but we leave you, our readers, to
make your own judgement.
If the volatility of the polls is anything to go by,
everything hangs tentatively in the balance as we
near the day on which the UK public will choose
its next Prime Minister. And, much like Game of
Thrones, audiences are guaranteed a show packed
with drama, suspense and cliff-hangers as one of
the most closely fought general elections in memory reaches its eagerly awaited finale.
ARTICLE BY IPSE MAGAZINE
EDITOR BENEDICT SMITH
@BENSMITHIPSE
GENERAL ELECTION SPOTLIGHT:
THE IPSE POLICY PILLAR
Where the Parties stand…
THE CONSERVATIVE PARTY
•David Cameron has said: “[The self-employed] are a key
part of our long-term economic plan […] we have changed
the tax system to support the self-employed, clamped
down on late payment, set up schemes like Start-up Loans
and liberated sole traders from needless regulations.”
RECOGNITION
•Considering new pension scheme for the self-employed.
•Support young enterprise schemes.
•Has published a national infrastructure plan every year
since 2010.
•Review of business rates will include work-hubs.
INFRASTRUCTURE
•Increase access to broadband, introduce free Wi-Fi on
trains, and improve mobile coverage via mast sharing.
•Support HS2, Thameslink, Crossrail and the Northern Hub.
•Commitment to build 200,000 new starter homes.
•Set up business conciliation service.
•Name and shame late payers and strengthen Prompt
Payment Code.
•Support for 25% of all government spend to flow to SMEs.
•Banned exclusivity clauses in zero hour contracts.
REGULATION
AND BARRIERS
TO BUSINESS
•Improve collection of ‘earnings data’ for the
self-employed in the Labour Force Survey to improve
their visibility in statistics.
•Conservatives appointed David Morris MP as
‘Self-employed ambassador.’
•Considering extension of maternity pay to the self-employed.
SUPPORT AND
STARTING OUT
THE LABOUR PARTY
•Government welcomed OTS employment status report in
Budget 2015.
ill launch a review of how to improve support for
• W
new entrepreneurs and SMEs.
•Create a Small Business Administration.
•Commitments on enterprise policy in schools,
including enterprise governors.
Set up the National Infrastructure Commission.
•
•Get at least 200,000 homes built every year by 2020.
•
Spend £75 million on increasing access to rural broadband.
•Review the costs of HS2 and potentially slow or delay
implementation of the route north of Manchester.
•Rail fares increases will be more heavily regulated.
•
Stronger penalties on late payment and naming
and shaming of late payers.
•The Small Business Administration would be tasked with
reducing regulation.
•‘Abolish loophole that allows firms to pay agency workers
less than permanent staff’.
•Those on zero hours contracts will have a right to an
employment contract after 12 weeks.
•A quarter of contracts will be reserved for small businesses.
•Considering a policy that any firm hiring an ICT worker
on a government contract also engages an apprentice.
•Action on ‘blacklisting’ in the construction industry.
•Bear down on disguised employment.
•No commitment on IR35 (unlikely to abolish as opted
against it in 2011).
•Committed to not raising VAT rate.
•Tough sanctions for tax evasion.
•Scrap Class 2 NICs (Budget 2015).
•Scrap annual returns (Budget 2015).
•Increase personal allowance to £11,000 by 2018
(Budget 2015) with eventual rise to £12,500.
TAXATION
•No commitment on IR35.
•NICs will not be raised. 50p rate of income tax reintroduced.
•VAT will not be raised.
•Will consult on the design of a simplified tax system for
small businesses, including a fixed monthly tax payment.
• L abour’s Finance and Industry Group has backed the creation
of a ‘Freelance Limited Company’ although this is not official
party policy.
•Consult on restrictions to travel and subsistence
allowances for limited company contractors
(Budget 2015).
•
Business rates cut and frozen for properties with
a rateable value of less than £50,000.
•Raise the 40p threshold to £42,700 by 2017 and £43,000
by 2018.
•Continue supporting the Employment Allowance.
•Have lowered corporation tax to 20% and committed to
keeping it there.
•Possible commitment to introduce nil-rate band of
£175,000 on inheritance tax.
•Possible rise in the higher rate of corporation tax to 21p.
•Consider introducing a ‘corporate equity allowance’
for SMEs.
•New 10p rate of tax.
15
IPSE’s Policy team has been working hard behind the scenes to show you where each
of the parties sits on our key manifesto points at the time of going to print (14th April).
The text in italic indicates where IPSE has played a part in any of these pledges.
LIBERAL DEMOCRATS
SNP
•Lorely Burt MP appointed
government’s ‘women in
enterprise’ champion.
•SNP leader Nicola Sturgeon has
pledged to support the ‘ability,
determination, vitality and
passion to succeed’ of the
self-employed.
•Launching Entrepreneurs Network.
•Expand apprenticeship places
in Scotland.
•Establish review to consider case
for introducing single rate of tax
relief for pensions.
UKIP
THE GREEN PARTY
•Leader Natalie Bennett has said
half of new jobs created since 2010
are self-employed, but claims 80%
living in poverty.
•Introduce apprenticeship option
(instead of non-core GCSEs).
•Introduce ‘Citizens’ Pensions’ – set
no lower than official poverty line.
•Conduct skills review to inform
education system.
•Will apply equal pay and
anti-discrimination legislation to
contracts between businesses.
•Complete roll-out of high speed
broadband to over 99% of the UK.
•Expand high speed broadband
across Scotland.
implify planning regulations for
• S
empty commercial properties.
•Build 500,000 social rented homes
by 2020.
•Invest in infrastructure to create
‘Northern Economic Corridor’.
•Electrify rail network in
Central Scotland.
• Scrap HS2 rail project.
•Scrap HS2 rail project.
•Tax foreign vehicles on entry to the UK.
•Support HS2 rail project.
• Scrap toll roads.
•Opposed to Heathrow airport expansion.
•Protect green belt and encourage
building on brownfield sites.
•Increase rate of house building to
300,000 a year.
•To tackle late payment,
tougher reporting requirements
and strengthening the Prompt
Payment Code.
•Protect the Small Business Bonus.
•Repeal Agency Workers Directive.
•HMRC fines for late payers.
•Simplifying procurement
requirements.
•Push for third of government
contracts to go to SMEs.
•Registers of ‘genuinely self-employed
workers’ to be set up in some
industries (e.g. construction).
•Establish new Labour Courts
responsible for interpreting
legal definition of ‘employee’.
•Clamp down on abusive practices
in relation to zero hours contracts.
•Favour local procurement in their
purchasing decisions.
•Establish new Regulation Advisory
Board to reduce regulatory
uncertainty.
•Plan to legislate to ensure that
small businesses and self-employed
people are paid on time.
•No commitment on IR35.
•Review business rates in England
– will cover option of moving to site
value rating within five years and, in
the longer term, land value taxation.
•No increase in income tax, VAT, NICs
and corporation tax.
•Would raise income tax personal
allowance threshold to £11,000 by
2016, £12,500 by 2020.
•Law around tax evasion tightened
to ‘strict liability’.
•Continued commitment to low and
competitive taxes for Scottish
business community.
•Support for the merging of income tax
and national insurance.
•Increase minimum wage to £10/
hour by 2020.
•Supports reintroduction of 50p top
rate of tax.
•Scrap inheritance tax.
•Increase personal allowance to the
level of full-time minimum wage
earnings (£13,500).
•Replace council tax and business
rates with ‘progressive land tax’.
•Has dropped commitment to
introduce lower corporation and
income taxes in Scotland.
GENERAL ELECTION SPOTLIGHT:
THE IPSE MEMBERS POLL
16
IPSE MEMBERS DISILLUSIONED
WITH LEADING POLITICAL PARTIES
Simon McVicker, Director of Policy and External Affairs at IPSE, compares
the IPSE membership’s 2015 political preferences with those of five years ago.
CONSERVATIVES
53%
2009
2015
36%
17%
LABOUR
2009
1%
2015
7%
6%
LIBERAL DEMOCRATS
2009
2015
8%
6%
2%
OTHERS
2009
2015
6%
13%
7%
DON’T KNOW
2009
2015
As we head towards the 2015 general election it
seems that IPSE members’ support for the Conservatives has dropped quite significantly since
we last polled our members in 2009. However,
this has not been matched by a surge of support
for Labour or the Liberal Democrats.
Support for other parties has nearly doubled
while the Don’t Knows or Won’t Says are now
nearly two in every five of our members.
The caveat for these figures is that when we
polled our members in June 2009 there was a
lot of noise at that time about the Conservatives
abolishing IR35 if they won power at the 2010
general election. The fact that they did not and
are subsequently down 17% since then may not
really be a surprise.
Their lead of 29% over Labour suggests that, of
the major parties, they are still seen as the party for freelancers and the self-employed. How-
32%
38%
6%
AS WE HEAD TOWARDS THE 2015 GENERAL
ELECTION, IT SEEMS THAT IPSE MEMBERS’
SUPPORT FOR THE CONSERVATIVES HAS
DROPPED QUITE SIGNIFICANTLY
ever, for a party that would be expecting to be
doing extremely well among this group to be
only gaining just over a third of them must be
concerning. Conservative hopes might be down
to pulling in some of the 38% Don’t Knows.
An interesting footnote to the 2015 poll is that
in the Others category the Greens get just
under half with 6% while UKIP only gets a
disappointing 4%. The SNP is polling 1.7%. It
should be taken into account that this is a UK
membership vote.
In summary, the Conservatives do seem to have
disappointed many members, but despite all of
that they are still seen as having the best policies
for those working for themselves.
The Labour Party has not made the impact that
it would have hoped for, not even breaking into
double figures. There are many members who are
disillusioned, unsure of who to vote for, or plainly
and simply, just not planning to vote at all!
ARTICLE BY IPSE’S DIRECTOR OF POLICY AND
EXTERNAL AFFAIRS SIMON MCVICKER
@SIMONMCVICKER
GENERAL ELECTION SPOTLIGHT:
HAMISH MACDONELL
SNP SUCCESS
COULD BE LABOUR’S
GROUNDHOG DAY
Political commentator Hamish Macdonell weighs up the Scottish National
Party’s general election chances as they prepare for battle on 7th May.
Remember that recurring scene from Groundhog
Day? The clock clicks over to 6am, Sonny and
Cher’s ‘I’ve Got You Babe’ rattles out from the
radio and Bill Murray is stuck once again in a day
from which he can never escape.
Well, if Nicola Sturgeon and Alex Salmond get
their way, that will be Ed Miliband in No. 10,
trapped in a recurring political nightmare – put
there and kept there by Mr Salmond and the SNP.
This used to be the stuff of wild SNP dreams.
Indeed, it was a subject that was generally only
ever discussed by nationalists, late into the night
after several good malts, and only among very
good friends. But something crucial has happened
because the prospect not just of helping keep
Labour in power, but of the SNP pulling the
strings, is now a core part of nationalist policy.
Indeed, if the SNP had only one ambition for next
month’s election it would be this – hold the balance of power. Partly, this is because of what seems
to be the incontrovertible evidence from poll
after poll after poll but partly it is because of a
little known part of a recent piece of legislation.
The polling is crucial but it is worth pausing
just to consider the Fixed Term Parliaments
Act 2011 because this is the piece of legislation
that The SNP believe will be their secret weapon. The key part of this Act is the bit that says
that an election can only be called if it has the
support of two-thirds of the Commons. Now,
imagine, as the polls suggest, that neither the
Conservative Party nor the Labour Party has a
majority and the SNP allies itself with Mr Miliband, at least to get him into No. 10 and keep
David Cameron out.
Nicola Sturgeon and the SNP would then harry
and chivvy, demanding changes to every piece of
legislation put forward by Labour, and what could
Mr Miliband do about it? He couldn’t call another election – as the Prime Minister used to be able
to do – because he will not be able to command
a two-thirds majority in the Commons.
So he will be stuck, trapped and forced to dance
to the nationalists’ tune, until or unless Nicola
Sturgeon or the Conservatives decide to put him
out of his misery and allow him to call another
election. This is the Groundhog Day scenario so
beloved of SNP activists and they really do believe
it is within their grasp.
IF THE SNP ONLY HAD ONE AMBITION FOR
NEXT MONTH’S ELECTION IT WOULD BE
THIS – HOLD THE BALANCE OF POWER
If the polls are to be believed, the SNP is poised
to increase its representation in the Commons
from the six MPs elected in 2010 to anything up
to 50 of Scotland’s 59 seats, destroying the Scottish Labour Party in the process. Is this going to
happen? One senior SNP member of the Scottish
Parliament recently suggested to me privately
that he “would bite the hand off” anybody who
could guarantee the SNP 30 seats or more so there
is clearly caution and more than a little scepticism
in senior SNP ranks about the poll findings.
Then there are also local factors to consider,
factors which the polls don’t take into account.
For instance, there are incumbents – Labour,
Liberal Democrat and even Tory – who enjoy
personal support in their areas and this is not
reflected in the polls. And there is the issue of
tactical voting. There will undoubtedly be unionist voters who will drop their traditional loyalties
to back the candidate most likely to beat the
nationalists. However, even taking those issues
into account, it is difficult to see how the SNP is
going to fail to get at least 30 seats – a majority of
the constituencies in Scotland.
Professor John Curtice, an elections expert at
Strathclyde University, explained how getting
45% of the vote could prove to be so influential
this year. He said: “The SNP got 45% of the vote
in the Scottish elections in May 2011 and, under
the proportional system used there, this was just
enough for a majority. The SNP got 45% of the
vote in the referendum, and it lost but if you get
45% of the vote in a general election then you can
really go places.”
By going places, Professor Curtice meant a vast
majority of the seats, possibly as many as 50.
Professor Curtice also pointed out that the polls
haven’t really shifted in the last few months: they
all show the SNP on about the same level of
support it received in the 2011 Scottish elections
and the same level of support the Yes camp got
in last year’s referendum.
So the message is this: there is no reason to doubt
the veracity of the polls. The SNP appears to be
holding steady on 45% – as it has done for the last
four years – and, if it secures this share of the vote
in May, it will win a lot of seats. Why has this
happened? Because a section of the population
which used to vote Labour in general elections
and SNP in Scottish elections has just stayed with
the SNP. The Labour Party used to be able to rely
on this group to get dozens of MPs elected at
general elections. Well, not any more.
The Conservative vote in Scotland has remained
fairly static but the Liberal Democrat vote has
collapsed and much of this, too, has gone to the
SNP. As a result, the general election campaign
in Scotland is very different to the one in England.
Indeed, it is almost as if we are fighting the referendum campaign all over again with the SNP
on one side and the unionist parties on the other.
But, of more pressing concern for Labour and the
Tories is this simple, unavoidable reality – whichever way the election goes, the SNP will win. If
Mr Cameron secures a majority, the SNP will
claim that the Scots’ wishes are being ignored by
a government they didn’t vote for, prompting
demands for a fresh referendum on independence.
If the Tories emerge as the largest party but without a majority, the SNP will use its numbers – with
Labour – to force Mr Cameron out of office,
demonstrating its power and influence to the
whole of Scotland. And, if Mr Miliband is forced
to embrace the SNP in a loose vote-by-vote deal,
the nationalists will keep him in place whether he
likes it or not, changing and amending every piece
of legislation they can get their hands on. No
wonder Alex has been seen drinking pink champagne and living it up in London recently. He
knows he really can’t lose in May. Perhaps it is
time his opponents started to realise this too.
ARTICLE BY HAMISH MACDONELL
@HAMISHMACDONELL
19
KEYFACT
45%
THE PERCENTAGE OF
THE VOTE THE SNP GOT
IN THE REFERENDUM
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BEN WRIGHT
21
BUILDING A CAPITAL MARKETS UNION
Ben Wright looks at the European Commission’s latest plan and what it means for Europe’s smallest businesses.
While the EU has been largely successful in creating a single market for goods, the same does not
apply so much to capital. But in an attempt to
remedy this, the European Commission is looking
into integrating capital markets across Europe.
system. This is part of an emerging trend of
alternative methods to bank financing, as
‘challenger banks’ begin to become more popular – especially with independent professionals
and SMEs.
The plan, announced last November by Commission President Jean-Claude Juncker, is to create
a Capital Market Union (CMU) in Europe. Put
simply, a CMU would involve a European single
market for capital, enhancing and integrating the
role of financial markets in Europe, easing access
to funding for SMEs and allowing new forms of
capital and finance to flow freely across borders.
Jonathan Hill, European Commissioner for
Financial Stability, Financial Services and
Capital Markets Union, has stated that an
enhanced role for financial markets in Europe
is not intended to displace the role of banks,
but to complement them. If the two systems
can complement each other, then SMEs stand
to benefit two-fold, as alternative funding
channels increase while competition might
encourage banks to lend more.
It’s still in its infancy, but efforts towards building this CMU have made significant progress in
recent weeks with the publication of a green
paper in February, which set out its three main
aims: to unlock more investment for SMEs and
infrastructure projects, to attract more investment into the EU from around the world, and
to make the financial system more stable by
opening up a wider range of funding sources.
WHY DO SMEs NEED
A CAPITAL MARKETS UNION?
Building a CMU has been a central aspect of
President Juncker’s so-called ‘investment plan’
for jobs and growth in Europe. The CMU also
represents the desire of the Commission to
move Europe away from a heavy focus on a
bank-dominated financial system.
Currently, European SMEs often face difficulty
in accessing finance, relying on banks for 80%
of external financing.
Now, that’s not to say there isn’t a shortage of capital existing inside Europe. The problem is one of
access, whereby currently SMEs in Europe are
unable to access capital markets directly. The CMU
hopes to unlock this ‘frozen’ money, giving SMEs
greater and fairer investment choices, with capital
travelling freely across borders.
The Commission calculated that deeper capital
markets – similar to those in America – would
have provided European SMEs with an additional €90 billion of funds between 2008 and 2013.
Giving business more options for funding would
help achieve the second goal of the CMU – to
lessen the dependence on the European banking
WHY DON’T SMEs NEED
A CAPITAL MARKETS UNION?
With banks apparently unable to adequately
finance Europe’s SMEs – which make up 99%
of businesses on the continent – a CMU appears
attractive. That said, restructuring Europe’s
financial system does contain risks.
While it’s clear that the current system is not entirely suited to financing small businesses, banks
have knowledge and experience in lending to
SMEs, which provides a level of stability and
accurate risk assessment in their lending decisions.
It remains unclear to what extent the union
would benefit SMEs and their access to finance.
Particularly among smaller businesses, access
to new sources of funding could remain limited.
Medium-sized firms could also struggle without
deregulation of national rules that could otherwise prevent efficient cross-border funding.
Promoting alternative forms of financing also
comes with new issues and responsibilities. Take
the increasingly popular practice of crowd-funding as an example – analysts have expressed
concern that cheap lending and bad practice from
inexperienced lenders could result in issues
further down the line. Crowd-funding must therefore be regulated; loose enough for capital to flow
as intended but tight enough to minimise risk.
A smooth-functioning CMU must provide both
secure investment for investors and protect
against an administrative burden for SMEs.
This will also require a review of the Prospectus Directive (which is currently undergoing
consultation), which in its current state could
present red tape for small businesses trying to
raise capital across the EU.
WHAT NEXT?
The establishment of the CMU is of course a
long way off and the European Commission must
learn to walk before it runs.
While the green paper outlines a number of steps
to be taken and touches on bigger issues that will
need to be addressed in the future, it offers little
in the way of concrete measures to address them.
A CMU WOULD INVOLVE A EUROPEAN
SINGLE MARKET FOR CAPITAL, ENHANCING
AND INTEGRATING THE ROLE OF FINANCIAL
MARKETS IN EUROPE
A consultation for the CMU runs until 13th May.
As is typical with European law, much of the
difficulty will lie in harmonising the variation
across Member States’ tax rules and business
law and how their own financial markets are run.
However some analysts view full harmonisation of these issues negatively, arguing they
are key tools for competition in Europe, which
suggests the key building blocks of the CMU
should be deregulation of existing barriers
rather than the introduction of a host of
burdensome new regulation.
@BENIPSE
TECH CITY OXFORD
OXFORD – THE HISTORICAL CITY
ENTERING THE DIGITAL AGE
Having nurtured some of the greatest political, scientific and literary minds in times gone by, it’s no wonder the city of
dreaming spires has earned a reputation as one of the world’s leading academic centres, writes Editor Benedict Smith.
But more recently, Oxford finds itself being revered
for reasons other than its long list of successful
alumni. The city’s digital industry is flying, and the
organisation propelling it, Digital Oxford, has a
plan to make it Britain’s top digital hub.
“We want Oxford, and Oxfordshire as a county,
to be recognised by Tech City UK as the number
one tech hub in the country on its own merits,”
Karen David of Digital Oxford told me.
And you certainly can’t knock their ambition.
This independent organisation is little over a
year old, but already has grand plans to make
Oxford a world-class digital destination to
attract jobs, funding, talent and investment to
the digital industry in Oxfordshire.
But given its mere 150,000 population, around
40,000 of whom are full-time university students, can Oxford really compete with some of
the world’s digital elite?
“In short, yes it’s possible. Our location on the
map, the skills we have at our disposal and our
established digital infrastructure make us very
appealing to digital businesses.
“Oxford as a place and Digital Oxford as an
organisation offer a close-knit and supportive
community to help companies flourish. We have
close links to Oxford’s world-class universities
and the dozens of science and tech hubs all over
the county,” Karen explained.
I would be lying if I said I wasn’t taken aback by
the size and importance of Oxfordshire’s digital
industry. At the last count there were over 21,000
digital minds in Oxfordshire, powering an
industry worth an estimated £500 million to the
county. Oxfordshire also boasts the second
highest concentration of creative and technical
jobs in the UK – again, not bad for a place typically associated with professors and punting.
Considering the word ‘digital’ itself is such a
commonly used – bordering on overused – term,
and one that encompasses a broad range of skills,
I wanted to find out what these digital minds
actually get up to.
AT THE LAST COUNT THERE WERE OVER
21,000 DIGITAL MINDS IN OXFORDSHIRE,
POWERING AN INDUSTRY WORTH AN
ESTIMATED £500 MILLION TO THE COUNTY
“Digital really does stretch across a variety of roles,
industries and professions, which is what makes
it so exciting. We get involved with agencies
developing digital products or offering creative
services, individuals running their own businesses, technology start-ups and even an engineering
company which deploys digital technology.”
And as one would expect of a digital organisation,
the website is the place for the growing number
of freelancers and small business owners to meet,
regardless of whether their interest in Oxfordshire’s digital industry is firm or fleeting.
“We provide support and promotion for any
digital or relevant event in Oxfordshire, cover
regional success stories and specialise in making
23
introductions. We have a strong online presence,
and on DigitalOxford.com, company members
and upcoming events are listed, projects are
posted and Oxford’s digital community can meet
each other,” Karen explained.
With the lion’s share of the county’s digital community aged between 20 and 40, it is a young-ish,
energetic and ambitious project to be a part of.
That said, Digital Oxford is keen to tap even further into the deep pool of digital talent at large in
the city’s universities and schools.
GOVERNED AND RUN ENTIRELY BY AN
ELECTED COMMITTEE OF VOLUNTEERS,
THE TEAM ARE CLEARLY PASSIONATE
ABOUT WHAT THEY DO
“The universities – both of which are worldclass – along with the great research institutions make Oxford one of the best places to
grow a digital business. We’ve got big plans to
extend our reach to benefit school leavers,
even more university students and career
starters seeking apprenticeships.”
INFOTIP
While it’s still very much early days for Digital
Oxford – and indeed the county’s digital industry – exciting times lie ahead for both. And as
Karen so aptly put it to me: “We’re just starting
out here and we have shed-loads of ambition.
So make sure you watch this space…”
DIGITAL OXFORD WEEK RUNS
FROM THE 9 TO 17TH MAY.
FOR MORE INFORMATION,
VISIT DIGITALOXFORD.COM
OR FOLLOW
@DIGITALOXFORD
Governed and run entirely by an elected committee of volunteers, the team are clearly passionate
about what they do, and it’s refreshing to see an
organisation – albeit young and relatively small in
size – harbouring the ambition to take on some of
the UK’s top digital cities.
“With 30 monthly meet-ups, nine major business
parks, an international gaming hub and regular
international tech conferences, Oxford is rapidly
developing into one of the UK’s most attractive
digital destinations,” Karen emphasised.
ARTICLE BY IPSE MAGAZINE
EDITOR BENEDICT SMITH
@BENSMITHIPSE
This morning, Tim viewed the
latest digital issue of Talk Business
Magazine, on his tablet
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CONTRACTOR FINANCIALS
25
HOW WILL THE GENERAL ELECTION
AFFECT YOUR MORTGAGE?
Tony Harris of Contractor Financials explains how the general election might impact on the housing market.
LET BATTLE COMMENCE
On 7th May, UK voters will head to the polls to
decide the political future of the second half of
the decade.
Political commentators are calling the 2015
general election one of the most unpredictable
elections in recent times, but with plans from
all the major parties for a significant boost to
new housing development, affordable housing
and greater competition in the mortgage market,
this year could shape up to be a very interesting
one for contractors.
HOUSING POLICY IS THE FRONT LINE
The current Coalition Government’s Help to
Buy equity loan, which offers buyers an interestfree loan of 20% of the purchase price for newly built properties, has helped kick-start a flat
housing market and has given many the opportunity to get on the property ladder far earlier
than they could have hoped for.
Housing and mortgages are high on everyone’s
agenda and one of the most crucial battlegrounds
for gaining votes is the shortage of new housing,
with high demand pent up after many years of
stagnant new build. In common with the wider
community, the lack of affordable housing,
especially in England, is one of the key concerns
for contractors.
THE REALITY IS THAT THE OUTCOME
OF THE ELECTION IS UNLIKELY TO
HAVE ANY REAL EFFECT ON THE
MORTGAGE MARKET
THE BATTLEGROUND: AFFORDABLE HOUSING
CONTRACTORS CONQUER
AND THE CRUSADE FOR FIRST-TIME BUYERS
Party manifestos are notorious for their flexibility in the run up to the election. The reality
is that the outcome of the election is unlikely
to have any real effect on the mortgage market
or housing initially and the run up to voting day
is likely to be a great time for the members of
the freelancer community to secure their first
or new home.
By contrast, the Liberal Democrats have recognised that many people can’t afford to purchase their own home at all and in response
have promised more affordable properties.
Working alongside providers to create
new-model housing to pave the way for lower
income working families to get on the property ladder, the Lib Dems seem set on a radical
return to quasi-social housing.
While many are biding their time to see what
the outcome of the election will be, contractors
seem to have taken advantage of low rates and
recent government initiatives and with estate
agents reporting a 30% increase in the number
of properties selling below the asking price this
year, there are plenty of bargains to be found.
The Conservatives have concentrated on firsttime buyers, promising 200,000 new starter
homes for people under the age of 40 by 2020,
doubling the 100,000 already proposed by the
Coalition Government. These would-be homeowners will be able to buy a house at 20% below
the market rate.
Labour has also got on the housing bandwagon
and has pledged to build 200,000 houses a year
by 2020, including new towns and garden cities.
That said, it remains to be seen what new taxes
and reduced reliefs will need to be introduced
to help fund such a bold initiative.
LANDLORDS TAKE TO THE BUNKERS
Recently, Buy-to-Let has seen a boom, and my
thinking is that this will continue. With new
freedoms in pensions, Buy-to-Let has been seen
by many contractors as an ideal top-up investment strategy for their retirement. However, it
has not escaped the notice of the manifesto
writers, with Labour in particular promising to
take a long hard look at the scheme if they were
to come into power.
Concentrating on the private rental sector,
potential policies include standardising threeyear tenancies, capping rent rises and banning
letting agent fees. The many thousands of
contractors with investment properties will
want to keep a close eye on developments as
we draw nearer to the polls.
For existing homeowners, if it has been a while
since you secured your last mortgage then you
might be surprised by how far interest rates have
come down – it’s worthwhile revisiting what is
many people’s largest outgoing.
The majority of lenders will cover your solicitor’s
fees and valuation costs if you are remortgaging,
so you could save more than you think and secure
a good long-term rate in the run up to what is
certain to be an unsettling election year.
TONY HARRIS IS FROM CONTRACTOR
FINANCIALS, SPECIALIST INDEPENDENT
FINANCIAL ADVISERS TO THE UK’S
FREELANCE AND CONTRACTOR COMMUNITY.
FOR MORE INFORMATION, VISIT
CONTRACTORFINANCIALS.COM
CAROLINE BALDWIN
COMPUTER CLUB
When it comes to computers, the word on everyone’s lips
is still ‘tablet’, but gadget lovers shouldn’t be turning their
backs on the humble laptop just yet. Caroline Baldwin
is back to review the best laptops on the market.
Thanks to advances in screen quality, battery power and lightweight materials,
laptops still remain a contender to be our faithful work devices. While laptop
purchases in the past were strongly affected by software and whether the device
ran Microsoft Office, thanks to cloud tools and Office 365, a new wave of devices
has appeared, opening up the market. Here’s our round-up of some of the best
laptops on the market which tick all the boxes.
FOR SCREEN QUALITY
ACER ASPIRE V NITRO BLACK EDITION
FOR TRAVELLERS
MICROSOFT SURFACE PRO 3
FOR THE OFFICE WORKER
FUJITSU LIFEBOOK U745
Acer’s Black Edition of its V Nitro range is the
machine for graphics geeks. Available with either
a 15- or 17-inch screen, the V Nitro series is built
for visual multimedia tools such as photo
and video editing and other graphics-intensive
applications, including gaming.
Not many tablet or hybrid devices can match up
to a laptop, but if you’re on the go for the majority of your working day, Microsoft’s latest Surface
device can provide you with a lightweight PC
that doesn’t cut corners on power.
Due to their slim size, ultrabooks jam-packed
with connectivity portals are not the easiest
devices to come by, but the Lifebook U745
combines mobility with many of the ports
familiar with an enterprise desktop device,
including a VGA output.
The full-HD display is backed up by a
fourth-generation Intel Core processor and
NVIDIA GeForce graphics card, while the
screen’s in-plane switching technology provides
a wide viewing angle for comfortable high-quality multimedia use, and the Acer ComfyView
non-glare technology claims to make long hours
of intense video editing that little bit kinder on
your retinas.
The laptop can come with a hard disk of up to 3TB,
and the option to upgrade to 256GB of SSD storage
to speed up the device. It’s also a mere 2.5cm thick,
with a slick metal finish clamshell design.
FROM £699.99
Available from the Acer store online
Its latest professional tablet has a fourth generation Intel Core processor, a multitude of connection ports and a 12-inch screen. Throw in a
9-hour battery life even when web browsing and
a click-in keyboard, and this hybrid device remains one of the best contenders when it comes
to working on the go.
FROM £639
Available from various retailers
Other connections include a display port. You
can charge a USB device even when the LifeBook
is turned off. The U745 also has the option of
additional security using Fujitsu’s PalmVein
Sensor technology.
This 14-inch ultrabook is compatible with Lifebook docking stations, meaning you can hook
up the device in your office, connecting it easily
to power and a monitor of your choice, while at
1.55kg it is easy to pack up and take on the road.
FROM £749 (ex VAT)
Available from various UK distributors
27
FOR THE POWER HUNGRY
HP ELITEBOOK FOLIO 1020
FOR A BUDGET
TOSHIBA CHROMEBOOK 2
FOR VERSATILITY
LENOVO YOGA 3
At 1.2kg and 15.7mm thick, HP’s EliteBook
Folio 1020 boasts of being one of the lightest
business-class notebooks on the market.
If your laptop requirements are fairly basic and
you only use a few applications such as word
processing and email, save some pennies and
pick up a Chromebook.
Is it a tablet? Is it a laptop? Sometimes the two
blur the lines. But what this device is, is extremely adaptable. Its flexibility comes in handy if you
depend on your keyboard throughout the day,
as the Yoga features four different positions –
laptop, stand, tent or tablet – while its 10-point
touch screen display allows the screen to flip
around 350 degrees.
But combining 9-hour battery life with 250GB
of memory and a 1.2GHz Intel Core M-5Y71
processor, this laptop is a great ally for those
who crave power from their devices. Plus its
fanless design and SSD storage claim to deliver
speed in near silence.
With enterprise-grade security features,
this laptop is also designed to withstand
military-grade drops and shocks as well as
extreme temperature and humidity.
FROM £1,395 (ex VAT)
Available from the HP store
Using Google’s Chrome operating system,
Chromebooks are cloud-based laptops, meaning
you have to have a decent internet connection
to use most of its functions.
Toshiba recently released its latest Chromebook, which provides extraordinary value for
money. At under £250 you can get your hands
on a full HD 13.3-inch display laptop which
weighs only 1.35kg. It comes with 100GB free
Google Drive storage for two years so your work
can be saved online, as well as two USB ports
and a memory card slot which helps juggle the
16GB of internal storage.
With up to 9 hours battery for the full HD version, this sleek silver clamshell device is giving
its heavyweight ultrabook competitors a run for
its money.
FROM £249 (FULL HD), £199 (HD)
Available from various retailers
The Yoga 3 is available from 1.2kg and only
15.8mm thick and this multimedia device is
powered by the efficient Intel Core M processor,
and runs Windows 8.1.
FROM £549.99
Available widely
AND NOT FORGETTING
APPLE’S NEW MACBOOK
Apple’s devices hardly need an introduction, but
the tech giant’s latest laptop offering is simply
named the new MacBook. Revealed at the
beginning of March, the new MacBook is 13.1mm
thin, 0.9kg with a 12-inch retina display.
COMING SOON
Even available in gold
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REPUTATION AND BRAND
29
REPUTATION AND BRAND
Daniel Farey-Jones asks whether building a personal brand
as a freelancer is really that important after all.
It’s pretty much a given that big successful companies have rock-solid brands – recognisable
and perceived positively by their key people. But
how important, if at all, is this kind of thing for
the one-man-band? Let me try and tell you.
But firstly, why me? Well, I’m a journalist who
has just gone freelance after working for two
marketing industry publications
called Brand Republic and PRWeek for
the past decade. Perhaps you’ll be
disappointed to know that at no stage
in my grand plan to sell myself have I
pulled up a flipboard and plotted my
brand values, my tone of voice and my
mission statement.
building – not to tell them about his brand but
simply to find out what they did and if they used
freelancers like him.
There’s no substitute for relationships and faceto-face conversations. I got the chance to write
this very article because I met an old contact,
who happened to be a colleague of the editor, at
Freelancers should be using marketing to
diversify their client base, but imagining
yourself as a brand is the other end of the
marketing wedge from making and taking
a sales opportunity. Some of you might be
thinking, why not make more of an effort
to stand out? After all, the reason companies spend millions on making consumers
like their brand is so they can charge a
premium over competitor products. Airbnb used to have a fairly plain brand, then
it hired a marketer from Coca-Cola and
had a makeover that positioned it as offering the feeling of belonging, wherever
you are in the world.
I have thanked my ancestors for lumping me with an unusual name, but
unlike Andy Murray I haven’t felt the
need to get my own logo. Also unlike
Andy Murray, I have spent a bit of time
on LinkedIn, which has helped popularise the term ‘personal brand’ as part
of its mission to make people think of
themselves as being permanently in
the careers shop window.
LinkedIn is an essential tool whether
you’re self-employed or not, and my few
years on it combined with the contacts
I’ve made in the course of my job have
given me a head start with going freelance. But
to be honest, the early work has come from the
likeliest route – former colleagues who know you
can do a job because they’ve worked with you.
an event. I had no control over what happened
between leaving my contact with my business
card and the editor getting in touch with me.
My first preference was for former colleagues I
rated and next best was to ask them or other
colleagues if they could recommend anyone.
One freelancer I used got plenty of work by
making an effort to talk to people around the
This is the part where if people could really be
like brands, the marketing industry would claim
that the editor’s preference for my personal
brand won me the job. (By the way, I’m afraid
that you’re going to be hearing more about
personal branding because at March’s Advertising Week Europe I counted no less than four
sessions on it, including one featuring Katie
Price.) But I suspect that what really guided
the editor to me was his need and his colleague’s
judgement of me.
SOME OF YOU MIGHT BE THINKING,
WHY NOT MAKE MORE OF AN
EFFORT TO STAND OUT?
Your brand is what you say about yourself, but
your reputation is what other people say about
you. The corporate world is full of disconnects
between reputations and brands – think banks
and energy companies.
When I commissioned freelancers, my main
concerns were how easy they were to find, whether they could do the job, whether they were
available and what they cost.
When I built my website it was – like it or not
– brand territory. People who have never heard
of me are going to get their first impression of
me from it. It’s succinct and it’s not flashy. As I’m
a written word journalist, people are going to be
more interested in my track record than anything
else, so it offers a one-page summary of my previous work and experience. And there’s no point
putting them off with, say, a bright orange
background. EasyFreelance anyone?
If you’re selling something to a mass
audience – possibly you’re an author or
musician – it might be worth getting into
that territory, but bear in mind you
have to repeatedly expose people to your
messages to lodge in their heads.
If you have a small pool of customers and potential
customers, your reputation is going to outrank
your brand. That’s the way it should be, however
big you are. What helped Airbnb get big? Not
branding, but word of mouth and reputation for
delivering a better experience than hotels.
If you want my advice, ignore the siren call of the
personal brand consultants. Stick to the basics.
Testimonials are the ideal middle-ground between
reputation and brand – you get to present a selective view of what your customers say about you.
ARTICLE BY DANIEL FAREY-JONES
@DANFAREYJONES
THE FREELANCERS GUIDE TO PARIS
85%
Percentage growth in independent
professionals in France from 2004 to 2013
Source: Patricia Leighton, Future Working:
The Rise of Europe’s Independent Professionals
10.6%
Percentage of France’s workforce
who are self-employed
Source: Izzy Hatfield, Self-Employment in Europe
2.77m
The number of self-employed
people in France in Q3 of 2014
31
THE FREELANCERS GUIDE
THE FREELANCER’S GUIDE TO
PA R I S
Jamie McDermott crosses the Channel and heads to Paris,
where he explores all the French capital has on offer for freelancers.
A BIT ABOUT THE PLACE
But if the more casual coffee-shop-meets-internetcafé-and-workspace environment is the one for you,
then AntiCafé will be more up your street. What’s more,
you only pay for the time you stay and you’re provided
with a delightful selection of unlimited coffee, tea and
snacks. Parfait!
Paris regularly features on the list of places to visit before
you die, and deservedly so. But fashion and aesthetics
aside, how does it rank when it comes to running your
own business – or more specifically, freelancing?
For a full list of co-working spaces in Paris, be sure to
visit sharedesk.net where you will find a wide selection
of work-hubs.
BUSINESS FRIENDLY?
The number of freelancers around the world is growing rapidly. The need for co-working spaces is higher
than ever and the realisation that working in a shared
office space can be mutually beneficial for all involved
is rising – and for good reason too!
Chic appeal, cafés on every corner, world-famous
cuisine, iconic monuments, a history back-dating
almost 2,300 years, not to mention cultural idiosyncrasies that we’ve come to know so well – the City of
Love truly is an enchanting city.
VERDICT
When you think of Paris in a business sense, ‘freelance
haven’ isn’t exactly a phrase which springs to mind.
However, after a pit-stop tour of the city, I quickly came
round to the idea of freelancing in the French capital.
Perhaps it just might be that Paris is the perfect city in
which to live and work.
If you happen to be like me and enjoy mixing up your
working days with trips to local coffee shops and stints
in co-working spaces, then what better than a city with
over 10,000 cafés and an influx of work-hubs that rival
some of the best designed corporate offices in London
and New York?
WHERE TO GO AND WHAT TO DO
You don’t have to spend long on Google to find a whole
host of coworking spaces and work-hubs, perfect for
freelancers working across a range of industries. From
the Remix co-working spaces located to the north of
the Seine, just a 10-minute walk from the Louvre and
open 24/7, to the Work In’ Paris Vaugirard, more to
the west and south of the river, there’s a space for every
type of freelancer, entrepreneur and small team.
Remix
AntiCafé
With more than 50 listed co-working spaces (and
counting) in the centre of Paris alone, it’s a city with a
growing community of independent professionals, all
with a hunger for sharing office space and collaborating in a creative and forward-thinking environment.
Getting through the laborious task of your morning
emails with a pain au raisin and espresso in hand, taking a late-lunch stroll across the Pont du Carrousel,
glancing towards Île de la Cité, make ‘work’ seem just
that bit more bearable.
So whether you’re thinking of relocating to Paris or
considering it for a work-week stop-off like me, there’s
a number of solutions for you to take advantage of as
a freelancer. Combine this with the history and
sightseeing delights, and you’re sure to fall for this
marvellous city.
Work In’ Paris
STU HERITAGE
33
PLAINLY SPEAKING
Stu Heritage faces up to the difficulties of saving for his future.
The opening sequence to the film Up makes everyone cry. Some people cry because it paints such a
delicate picture of love through the ages. Some cry
because of the unflinchingly brutal way we learn
that Carl and Ellie will never have children. Some
just cry because the music’s sad. But not me.
I cry because of the jar.
That bloody savings jar. Little by little throughout their married life, Carl and Ellie drop whatever spare change they have into the jar, in the
hope that one day they’ll be able to afford the
adventure of a lifetime. But stuff gets in the way,
and they’re forced to dip into their savings. A
tyre bursts. A leg breaks. There’s a storm. Before
they know it, they’re old and their jar is empty.
They’ll never go on that adventure.
MY JAR IS A SAVINGS ACCOUNT
AND MY ADVENTURE BASICALLY INVOLVES
NOT STARVING TO DEATH THREE DAYS
AFTER I RETIRE
The jar gets me every time because it perfectly
sums up how I am with money, except my jar is
a savings account and my adventure basically
involves not starving to death three days after I
retire. I do my best. I save what I can. But stuff
keeps getting in the way, and I keep dipping. My
computer will break. A client won’t pay. A tax
bill will get miscalculated. Currently, adjusting
for inflation, I’ve probably got enough stashed
away for one nice dinner and a box of Cup a Soups
after my retirement.
The sensible solution would be for me to get a
pension. But, like most of the other freelancers
I know, I’ve never got around to sorting one out.
Because I’m freelance, aren’t I? I’m a risk-taker.
My entire business model is centred on the
insane assumption that I’ll never get ill or want
a holiday. Who’s to say that I even need a pension,
anyway? I might get lucky and keel over with a
heart attack in my mid-50s. At the very least, I’d
certainly save a lot of paperwork that way.
Also, pensions are for old people. I’m not old. I
mean, sure, I’m married. And I’m a dad now. But
that doesn’t mean that I’m old. And, yes, I’m
going bald at an astonishing rate, and I just
bought a pair of trousers purely on the basis that
they looked quite comfy. But… oh, look, fine, I
might be getting a little bit old. I’m old and I
don’t have a pension. And now I’m having a
panic attack.
ALL THE TIME WE’RE HIDING FROM THE
PROBLEM, WE’RE ACTIVELY CUTTING OFF
THE AMOUNT OF MONEY THAT FUTURE
US HAS TO BUY FOOD WITH
Other people – other people with cushy staff
jobs, who don’t have to spend the first month of
every year frantically digging through boxes of
invoices and receipts because they’ve got no idea
how much tax they’re supposed to owe – don’t
understand. They’ve got corporate pension plans
and employer contributions and life assurances,
and the day they hit retirement age they’ll be
rolling around in all the Cup a Soups they can
eat, the lucky swines.
But us? We’re out here on our own, and it’s
absolutely terrifying. We don’t have a guaranteed
income, and many of us lack the security to pay
a fixed amount of money into a pension scheme
each month. Combine that with the deliberately
oblique language of the financial adviser, with
their stakeholder plans and their compulsory purchase annuities, and
you’ve got enough to freeze
us all into total inaction.
However, all the time we’re hiding from the
problem, we’re actively cutting off the amount
of money that Future Us has to buy food with.
It’s the most vicious of vicious circles, and we’re
not going to break out of it unless we make a
concerted effort.
So that’s what I’m doing. Just writing this piece,
and realising how utterly out on a limb I am
financially, has spooked me into getting something done. I’m going to bite the bullet and find
a financial adviser. I’m going to explain my situation to them. Whenever I get blinded by jargon,
which will be often, I’ll stop and ask them to use
smaller words, as if to an idiot. And, by hook or
by crook, I’m finally going to come away from
there with something approximating a pension.
Alternatively, I’m just going to buy a load of Cup
a Soups. They keep for 35 years, right?
@STUHERITAGE
Fortunately for Stu, IPSE is now
helping members prepare for their futures.
Through IPSE Futures, our members can join pension, life
assurance and private healthcare schemes at group rates –
usually at a fraction of the cost you would pay as an individual.
IPSE.CO.UK/FUTURES
HUB SPY
34
UBER OFFICE
IS THIS LONDON’S BEST WORK-HUB?
Editor Benedict Smith spends a day at one of the capital’s up-and-coming co-working spaces.
In my 18 months at IPSE, I’ve visited a fair few
co-working spaces around the UK. And to be
fair, the vast majority of them have been great
places to work from – I can’t complain really.
From cosy beanbag filled basements in winter,
to urban rooftops soaked in summertime sunshine, I’ve spent countless days sat with my
laptop putting together this very magazine in
work-hubs up and down the country. And just
like the many thousands of people choosing to
escape their soul-sucking offices and the distractions of their own homes, I too like pitching
up and working from different places whenever
I get the chance. As a writer, I’m far more productive working independently.
QUITE POSSIBLY ONE OF LONDON’S
MOST ELABORATE WORK-HUBS
I suppose this makes me sound like a miserable
sod, unappreciative of my colleagues here at IPSE,
longing to work alone – but that couldn’t be further
from the truth. The guys I work with are an inspiring bunch, but like many people, working in new
places next to new and interesting people does me
the world of good from time to time.
So, needless to say, when I came across Uber
Office in Victoria, I didn’t need much convincing
to take the short stroll from IPSE Towers to work
from what is quite possibly one of London’s most
elaborate work-hubs.
And I say elaborate in the most complimentary
of terms. In the dozens of offices I’ve had the
pleasure of visiting, more than most lack that
little bit of flamboyance – the perfect ingredient
to get you through a tough Friday morning.
Granted, with prices upwards of £400 per month –
on the face of it, it seems expensive. That said,
you’ll do well to find somewhere with such a
prestigious postcode, networking opportunities
and high standards for anything less.
With décor which includes artificial grass carpets
in meeting rooms, pink neon lights, a London
phone box and armchairs that wouldn’t be out
of place in the Big Brother Diary Room, Uber
Office is a bit of fun.
After a coffee and a quick chat with Kieran in
the kitchen, I was pleasantly surprised to learn
that Uber Office is a company with a conscience.
As firm believers in the value of entrepreneurialism, Kieran and his team offer free desks to
young self-employed people with the drive and
determination to make it on their own – something one or two of the other work-hubs I’ve
visited could learn from.
Now that’s not to say that founder and property
mogul Kieran James Brown and his team aren’t
serious about work. The place is kitted out head
to toe. With high-speed internet, private breakout rooms and a kitchen to boot, the facilities
are particularly accommodating for the 60-odd
freelance residents.
The place benefits from a great mix of people
working across a real variety of fields. With an
author, designers, freelance recruiters and even
a model agent in Uber Office’s ranks, it paints a
pleasant picture of self-employment in the UK
today – diverse, creative and in-demand.
Working on your own can be a lonely old
business, but with a strong bond among the
freelance residents at Uber Office, there’s a
nice atmosphere about the place – and I can’t
stress how important this is. Having a solid
network of like-minded people to share ideas
with and lean on in difficult periods can do
wonders in preventing that dreaded feeling
of isolation.
As my day came to a close, I spent a moment
reflecting on it. By a Friday’s standards it had
been a particularly productive, not to mention
enjoyable, day. It’s luxurious and the people are
friendly – instantly washing away any stereotypes I might have previously had about the
glamour of its Belgravia postcode. Bearing in
mind it’s just a stone’s throw from the IPSE office,
they might be seeing a lot more of me some time
soon. That’s if they’ll have me back…
ADDRESS
15–17 Grosvenor Gardens, London SW1
NEAREST TUBE
Victoria
TWITTER
@uberoffice
WE’RE ON A QUEST TO FIND
THE UK’S BEST WORK-HUB.
LET US KNOW YOUR
FAVOURITE @IPSEMAG
UP NEXT
ENGINE SHED, BRISTOL
@ENGINESHED_BB
Club Workspace is a fast-growing network
of creative co-working business clubs,
with exclusive locations across London for
entrepreneurs and professionals alike.
020 3176 4006
clubworkspace.co.uk
clublab.tumblr.com
@clubworkspace for news and events
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THE NETWORK EFFECT
36
BERLIN’S BEST CO-WORKING CAFÉ
SANKT OBERHOLZ
Located on the busy intersection of Rosenthaler Platz
and Torstraße in Berlin’s central ‘Mitte’ district is Sankt
Oberholz, a café cum restaurant cum co-working space.
Something of a local legend in Berlin, Sankt Oberholz
is a hub for Mitte’s freelancers and many involved in
Berlin’s thriving start-up scene.
The atmosphere is relaxed yet bustling – a vibe created almost entirely by Berliners working away on Macs
rather than by chitter-chatter.
And it’s precisely in its identity as a creative workplace rather than a café that Sankt Oberholz’s appeal
lies. As a work space it really is the real deal, with
multiple floors, plenty of tables and power sockets
littered everywhere, which is just as well – taking a
step inside, it would appear that bringing along a
Mac is almost mandatory.
And as if that wasn’t enough, there are dedicated 24hour co-working spaces available to rent upstairs, along
with regular events on all things tech and start-up held
in the evening.
ADDRESS
Rosenthaler Straße 72a
10119 Berlin
NEAREST U-BAHN
Rosenthaler Platz
TWITTER
@oberholz
Good coffee, great food and, of course, super-fast
Wi-Fi seal the deal. Just make sure to bring your Mac!
@BENIPSE
EAST LONDON’S FINEST
SAIGON STREET CAFÉ
Sat on the edge of Hackney’s Broadway Market and just
a leisurely stroll from the green grass of London Fields,
the outdoor Saigon Street Café serves tasty Vietnamese
coffee, which is quickly becoming the talk of the town.
A mish-mash of umbrellas, pin-striped deck chairs and
wobbly coffee-tables erected on the side of the road,
the unassuming Saigon Street Café arrives each Saturday morning and disappears shortly after the market
dwellers, leaving no trace.
So catch it if you can, because it’s without doubt worth
a visit for just for a black coffee alone. Nutty and unlike
any other coffee blend I’ve tasted, I’m a sucker for it
and often find myself watching the world go by with a
large filter, longing for summer days and longer nights.
RECENTLY VOTED ONE OF LONDON’S
BEST COFFEE SPOTS, NEEDLESS TO SAY,
THE COFFEE IS DELICIOUS
And without wanting to lead you down a blind alley
– this isn’t somewhere to work from – more of a source
of inspiration as you watch East London go about its
business each Saturday, come rain or shine.
Recently voted one of London’s best coffee spots, needless to say, the coffee is delicious. Perfect taste. Perfect
temperature. Perfect environment. If only the weather was just as consistently good!
@BENSMITHIPSE
ADDRESS
Broadway Market
London E8 4QJ
NEAREST STATION
London Fields
citizenM says:
the most unbusiness-like
business hotel you’re likely
to do business in.
to all freelancers of the world, citizenM welcomes you all
www.citizenM.com
London, New York, Paris, Amsterdam,
Glasgow & Rotterdam
#citizenM
MEMBERS’ DIARY
38
MEMBERS’ AREA
ELECTION TIME – BUT IT’S
NOT FOR WESTMINSTER!
The election process for IPSE’s Consultative
Council (CC) is now open. We want to make sure
you understand why it’s important to consider
putting yourself forward to join this crucial
elected body within the organisation.
IPSE needs representatives from all walks of
freelance life to come forward and help shape
the future of the organisation. You can have a
real influence over the direction of IPSE by
joining the CC.
IPSE’s CC has two main functions:
Whether it is experience or the next generation
you want for IPSE, you can only get what you
want if you put yourself forward.
1. An electoral college for the appointment of
directors elected from the membership.
2.A mechanism for consultation on major issues
for the Board of Directors and management
with representatives of IPSE’s members.
Crucially, the CC by simple majority can call an
Extraordinary General Meeting at any time. As
IPSE grows and evolves, it is vital that all sectors
of the membership are represented on the CC.
CC members take part in consultations, working parties and the Nominations Committee.
They even represent IPSE on outside forums.
Council members are extremely important to
whatever IPSE as an organisation does.
Election to the CC is open to any member of
IPSE who feels that they have something to
contribute. It is an essential part of IPSE’s
governance structure.
The nomination process is open until 16th
April, before voting officially opens on 28th
April until 14th May.
If you have any questions, or would like to
register your interest, please get in touch with
[email protected]
DATES FOR
YOUR DIARY
If you’re new to freelancing, desperate
to network or simply looking to brush
up on your business skills, what better
time to book onto an upcoming IPSE
event or visit one of the UK’s many
business shows in the next two months?
Visit www.IPSE.co.uk/events for
more information and to register.
THE SECURITY CLEARED EXPO –
THE UK’S LARGEST JOB BOARD,
ADVERTISING JOBS THAT
REQUIRE A LEVEL OF SECURITY
CLEARANCE
16TH APRIL
10:00–16:00 – BRISTOL
HOW TO WIN WORK
WITH YOUR LINKEDIN PROFILE
22ND APRIL
19:00–20:00 – WEBINAR
HOW TO MAXIMISE YOUR
TAKE HOME PAY THIS YEAR
22ND APRIL
18:30–20:30 – LONDON
TAX AND FINANCIAL PLANNING
30TH APRIL
18:30–20:30 – GUILDFORD
THE BUSINESS SHOW –
THE UK’S BIGGEST EXHIBITION
FOR ANYONE STARTING OR
GROWING A BUSINESS
13TH–14TH MAY
LONDON
ACCOUNTANCY & INSOLVENCY –
MAKING THE MOST OF YOUR
EARNINGS
20TH MAY
18:30–20:30 – LONDON
Guide to Freelancing
IPSE’s Guide to Freelancing is an interactive
resource, jam-packed full of business advice
and tips, from tax planning to marketing & PR.
If you’re just starting out or already an
established freelancer, this 80 page guide
is specifically designed for you.
Visit www.ipse.co.uk/guide to download it today.
Guide to Freelancing
1
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