Personal service firms add £38bn to UK economy
Personal service companies, whereby individuals operate as contract workers via an incorporated business, last year contributed almost £38 billion to UK GDP, according to new data.
The research, commissioned by the Association of Independent Professionals and the Self-Employed (IPSE), and conducted by Oxford Economics, found that the sum was generated by 307,000 PSCs, creating more than 600,000 jobs during the year. Their total economic contribution to GDP was greater than the whole mining and quarrying industry or the entire UK civil engineering sector.
IPSE chief executive Chris Bryce called on the UK government to abandon proposed changes to how PSCs are taxed in the public sector, and said that without such firms, “business and public projects would lose out on critical expertise and experience that makes the UK economy one of the most competitive in the world”.