Freelancers could play a major role in the economic recovery of the UK if plans to sustain growth are to be achieved.

Consulting firm McKinsey Global Institute (MGI) has released a report From Austerity to Prosperity: Seven Priorities for the long term which focuses on areas very relevant to contractors.

These areas, which MGI says will allow for sustained growth over the next two decades, include innovation, productivity, education, health, infrastructure and productivity.

In addition, the report says it is important to address regional imbalances in employment levels and the disproportionate number employed in the public and private sectors.

This comes after news that prime minister David Cameron praised the courage of the 1.4 million contractors working in the UK today, saying that the sector is vital to the economic recovery.

"I can't tell you how much admiration I have for people who leave the comfort of a regular wage to strike out on their own. It takes a lot of courage - and without that courage this country would be a much poorer place," he said.