Self-employed devastated by effect of the virus

The pandemic has left almost a third of selfemployed people struggling to get by each month, research reveals.

About 63% of people polled had seen a drop in income since March, and 30% said it was harder to get through each month without credit cards, overdrafts and loans.

Meanwhile 54% said they expect their financial situation to worsen.

The survey by insurer Royal London paints a worrying picture as 41% of self-employed people said they rely on debt to buy essentials.

Sarah Pennells, head of financial capability at Royal London, said: “Our research reveals the devastating effect of Covid-19 on people’s finances. Those who are self-employed have been particularly hard hit. And many are still not covered by various government support schemes. More needs to be done to make sure they don’t fall through the net.”

Britain’s manufacturers are calling on the Government to bring forward a clear, long-term economic plan which provides business and industry with a consistent strategy to help them steer through the pandemic during the months ahead.

The call was made by Make UK, which published its own three-point plan that contains proposals for the current lockdown period, an exit strategy and long-term economic and industrial recovery.

Make UK has offered to lead the manufacturing sector, working with government as it did on the Ventilator Challenge UK, in building a robust national capacity for mass regular testing of the UK population.

Publishing its “Prepare, Implement and Lead” plan, it said that the crisis had many months to run, with data from a survey of 200 firms showing that over a third believe it will take longer than 12 months to return to normal trading.

Stephen Phipson, chief executive at Make UK, said: “Government has already done a huge amount to support business but, as we move into the second lockdown, manufacturers and wider industry need a clear strategy that ensures we prepare, implement and lead from the start to prepare for the long-term.

“Businesses need as much certainty and stability as possible. Moreover, they need consistency of support. The current piecemeal and ever-changing model of support is not giving firms sufficient time to plan and prepare.

“Consistent, longer-term support that mirrors our international competitors is now needed.”