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Salon owners urge Budget VAT cut as staffing pressures grow

Salon owners urge Budget VAT cut as staffing pressures grow

Summary

More than 2,000 UK salon owners have urged Chancellor John Healey to cut VAT on hair and beauty services from 20% to 10% in the Budget. They say rising wage, pension and National Insurance costs are making it harder to employ staff, train apprentices and keep salons open.

Key Facts

  • The open letter is backed by the British Hair Consortium, which says traditional salon employers face rising costs.
  • Salon owner Marcus Perkins said he had spent about £2,000 this year on courses and travel to support a young stylist’s training.
  • Perkins said he had trained more than a dozen young people over two decades at his salon near Brierley Hill.
  • Salon workers say more stylists are renting chairs as self-employed workers instead of being directly employed by salons.
  • The British Hair Consortium says apprenticeship numbers have fallen sharply and warns financial pressures could worsen the trend.
  • Ministers have defended changes to employers’ National Insurance contributions and minimum wage increases as measures to improve pay, support public services and promote economic growth.
  • A Treasury spokesperson said the hair and beauty sector supports jobs, apprenticeships and high streets, and has benefited from business-rates reforms.
  • The British Beauty Council says hair and beauty businesses support local high streets, spending and social connection.
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