Truss appointed Prime Minister and urged to deliver on IR35

Former Foreign Secretary enters 10 Downing Street and is told to get to work by industry experts

Liz Truss will be appointed the new Prime Minister and Leader of the Conservative Party after she won 57.4% of the vote of Conservative Party members.

On the announcement, experts across the freelancing and contracting industry urged her to deliver on her recent promise to review IR35 and support the small business community.

Having vowed to lead a low-tax and low-intervention government, Truss will be expected to make this a reality. Throughout the campaign, Truss suggested at various points that she would review or immediately cut taxes.

Notably, she pledged to review IR35 if she was to become Prime Minister – something a number of experts in the contracting industry encouraged her to prioritise from the outset.

In a short speech following her announcement, Truss said that she campaigned as a Conservative, will govern as one and will “deliver a bold plan to cut taxes and grow our economy.”

“Crying out for a comprehensive response”

Leaders of national associations, including the Federation of Small Businesses (FSB) and the Confederation of British Industry (CBI) have reacted to Truss’s appointment, congratulating her and renewing calls for business and economic support.

Martin McTague,National Chair of the FSB, called for “big and bold” action to protect businesses and jobs from “sky-high taxes, rampant inflation and supply chain disruption.”

“Small businesses are crying out for a comprehensive response which cuts taxes, limits spiralling bills, and provides direct cash support for the smallest businesses,” he added.

Similarly, Tony Danker,Director-General of the CBI, called on the new Prime Minister to deliver economic support for households, workers and businesses.

And, speaking to Bdaily, Andy Chamberlain of IPSE echoed the same sentiment, calling for urgent support for businesses: “IPSE looks forward to working with the new Prime Minister and her cabinet,” he said.

Chamberlain added that IPSE wants Truss to tackle the cost-of-living crisis, in addition to focusing on IR35, employment status and the Managed Service Company legislation.

“These rules are destroying businesses and holding back the economy – and they need to change now,” he concluded.

What else must the new PM focus on?

IR35 will be one of – if not – the greatest concern to contractors, according to experts.

Prior to the announcement of Truss as Prime Minister, Derek Cribb, CEO of IPSE, welcomed her promise to review IR35 and asked that “she follows through on her word”.

Similarly, Qdos CEO, Seb Maley, stressed the need for an independent review of IR35 and one that “results in change”, before adding “that is, if the new Prime Minister genuinely wants to unlock the full potential of the flexible workforce.”

Alongside IR35, Mrs Truss is stepping into the country’s most senior office at a time of economic uncertainty and will be under immediate pressure to deliver a set of policies which ease the financial burden on businesses across the country.