FSB in Scotland cautiously welcomes Taylor review findings

The Federation of Small Businesses in Scotland has cautiously welcomed the findings of The Taylor Review into the current state of the UK labour laws and working conditions.

Among the issues covered by the report is employment in the so-called ‘gig economy’, and the FSB specifically welcomed the report’s recommendation to crackdown on false self-employment through the creation of a new dependent contractor status.

While it stops short of recommending that all workers in the gig economy should be entitled to the minimum wage, according to the BBC, the review will outline a structure obliging companies to prove that a worker can earn at least 1.2 times the present national living wage of £7.50 an hour.

A leaked draft of the report suggests Downing Street should introduce a new category of people, “dependent contractors”, who are eligible for workers’ rights but are not workers. It suggests that people in this category should be able to earn the national minimum wage if they desire.

The report also calls on the UK Government to encourage people who work for themselves to plan for their future, including for potential ill-health and eventual retirement.

With more than 300,000 self-employed people north of the border, the Scottish Government and its agencies could have a role to play in this area, the FSB suggests, alongside the ongoing contribution from membership organisations.

Andy Willox, the FSB’s Scottish policy convenor, said: “Taylor’s sensible proposals try to strike a balance between a fair and a flexible labour market. For example, the outlined contractor status could bring protections to those unfairly treated in the gig economy, without burdening the genuinely self-employed. Ministers and MPs must now protect the genuinely self-employed from being dragged into this new category.”

Earlier this year, FSB launched new research mapping Scotland’s self-employment hotspots. The study showed that many of Scotland’s most prosperous and successful places have large numbers of people who work for themselves.

Mr Willox said: “FSB has long supported and championed those that have chosen to strike out on their own – through both campaign work and membership services. Governments in Edinburgh and London must recognise the contribution of the self-employed, while looking at new ways to ensure these people get the support they need.

“However, the tax system must continue to recognise the risks faced daily by the genuinely self-employed. There should be no attempt to single them out for tax hikes.”

The report, published today, also recommends that firms which control and supervise their workers should pay a range of benefits, including National Insurance.

Mr Taylor also suggested that cash payments should be phased-out, finding that cash jobs such as window cleaning and decorating were worth up to £6bn a year and many were untaxed - something Mr Taylor says should be addressed.

Mr Taylor’s report recommends a new category of worker called a “dependent contractor”, who should be given extra protections by firms such as Uber and Deliveroo.

It also says low-paid workers should not be “stuck” at the minimum living wage or face insecurity.

Taylor, said “fairness demands” that people, particularly those on lower incomes, had routes to progress in work.