REVAMPING BRITAIN’S SHARING ECONOMY CAN OFFER A DIGITAL SAVVY ROUTE INTO WORK
The sharing economy sector can help the UK government’s twin challenge of reducing unemployment and supporting sustainable businesses, a new report by Sharing Economy UK says.
Two thirds of sharing economy businesses reported a decrease in turnover since Covid hit – ranging from fashion-rentals to car-sharing. Young people’s earnings and job prospects have been most affected by the pandemic but Generation Covid are also the largest users (over 70%) in the sharing economy, side hustling to earn extra income. With the rise in unemployment particularly among 16-25-year olds across the country, more can be done to rebuild this sector.
The new report provides real-world examples on how digital businesses across the sharing economy, both large and small, have been innovating to survive. During lockdown, skills sharing platform TaskRabbit experienced a surge in demand for home renovations, while HURR and ByRotation, saw a sharp rise in fashion rentals as consumers sought more sustainable choices.
Before the pandemic struck, the industry was set to be worth £140 billion by 2025. Yet Covid, resulting restrictions have had a profound impact across the sector and those who rely on it. Nonetheless, the new report finds demand in the sharing economy, whether in fashion, car or skills, has remained resilient.
The Government support schemes and loans have been a lifeline to smaller and start up businesses, but the sharing economy needs more targeted help to weather the pandemic.
To help this entrepreneurial sector thrive, meet the demands for a sustainable future and spur productivity, the new Sharing Economy UK report recommends:
Raising the tax-free amount for individuals participating in the sharing economy from £1,000 to £5,000 per year. This will encourage more participation in the sharing economy, make it easier for individuals to meet their income tax obligations while supporting the government’s objective to simplify the tax system.
Support for sharing economy businesses that reduce waste - from a reduction in VAT for rental services and those selling second-hand products to dedicated funding for businesses that prove they reduce waste - this should be encouraged, incentivised and rewarded.
Further investment in digital connectivity across the UK must be a priority along with digital skills training and access to affordable providers. Improving digital connectivity and skills will help eliminate the barriers to getting online.
Juliet Eccleston, Chair of Sharing Economy UK and Founder of AnyGood?, a sharing economy platform where a diverse network of professionals recommend other professionals for roles, said:
“This report highlights both the scale of the opportunity for the sharing economy and its role in both economic recovery and the race to Net Zero.
“Strengthening the sharing economy makes sense as young people’s employment prospects have been hit hardest by the pandemic yet they represent a growing number of participants across the sector.
“Supporting an innovative, productive and rapidly growing area of the economy can provide valuable employment opportunities and contributing meaningfully to the UK’s recovery.”
21 January 2020
Notes editor
1 Please note that, in relation to the ONS study that ‘The findings presented in this article are based on a small number of responses and therefore cannot be considered as representative of the sharing economy as a whole. However, they give us a picture that can be further developed with future research.’ https://www.ons.gov.uk/economy/economicoutputandproductivity/output/articles/thefeasibilityofmeasuringthesharingeconomy/october2020progressupdate
2 More than 70 per cent of Warwick Business School survey respondents in the age group 18 to 34 have used sharing platforms at least once
https://www.wbs.ac.uk/news/uk-sharing-economy-usage-rises-by-60-per-cent/
3 £140 billion by 2025 is stated in a PWC report that can be accessed via:https://pwc.blogs.com/press_room/2016/06/uks-key-sharing-economy-sectors-could-deliver-140-billion-by-2025.html
Featured members
