Liz Truss has been appointed as the new Leader of the Conservative Party and has, as a result, taken on the role of UK Prime Minister.

During her campaign for Party Leader, Truss made more than 149 pledges, including a promise to review IR35 and support sole traders and small businesses.

Now in power, many in the freelancing and contracting community are hoping that she, and her new Chancellor Kwasi Kwarteng, live up to the pledges that were made.

Alongside these specific pledges for the contracting community, Truss and her new Government are expected to make greater tax cuts, including abolishing a planned rise in Corporate Tax and reversing increases to National Insurance contributions introduced earlier this year.

So far, leaders of national associations, including the Federation of Small Businesses (FSB) and the Confederation of British Industry (CBI) have congratulated Truss on her victory but asked her to take immediate action to support businesses across the UK during the current economic crisis.

Martin McTague, National Chair of the FSB, said: “Small businesses are crying out for a comprehensive response which cuts taxes, limits spiralling bills, and provides direct cash support for the smallest businesses.” The FSB wants the new Government to take “bold” action.

The Director-General of the CBI, Tony Danker, has also requested that the Prime Minister deliver economic support for households, workers and businesses.

Finally, Andy Chamberlain of IPSE, speaking to Bdaily, said “IPSE looks forward to working with the new Prime Minister and her cabinet”, in particular their review of IR35, employment status and the Managed Service Company legislation.

He added: “These rules are destroying businesses and holding back the economy – and they need to change now.”

Urgent action

So far events have complicated the enactment of any new legislation, not least the sad passing of Her Majesty Queen Elizabeth II.

However, new energy support measures have been announced. A new Energy Price Guarantee will ensure that “a typical household in Great Britain pays an average £2,500 a year on their energy bill, for the next two years, from 1 October 2022”.

The Government has said this new measure will cap ‘per unit costs’ meaning that savings will remain linked to each consumer’s usage. However, a typical household will save at least £1,000 a year based on current prices from October.

A new six-month scheme for businesses and other non-domestic energy users will also be introduced. After this period ends, the Government will provide ongoing focused support for vulnerable industries.

Further details of this support and the Government’s other tax cuts and promises are expected in an imminent financial statement on Friday 23 September 2022.