Freelancing entrepreneurs hold key to recovery

Investec accepts that there will be some job cuts but thinks the government will focus more on controlling wages rather than mass redundancies. However, if people leave their public sector job it is highly unlikely that an immediate replacement will be found.

Investec believes that employment opportunities in the private sector will increase over the next 18 to 24 months as 67% of entrepreneurs plan to expand their workforce. However, to make this feasible, the government needs to provide an attractive environment so that entrepreneurs and contractors are encouraged to grow.

The main problem facing entrepreneurs is the UK tax system. Only 3% believe our system attracts people to start up a limited company. Earlier this year 10% of entrepreneurs said they plan to move abroad and another 17% are thinking about doing so.

The REC believes that the next few weeks are going to be crucial in establishing the future of the UK's employment sector. They are going to seize the opportunity to talk to the coalition to make issues regarding employment a priority.

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