National Hair & Beauty Federation (NHBF) Responds to Spring Statement

In response to the Spring Statement, Caroline Larissey, Chief Executive of the National Hair & Beauty Federation (NHBF) said:

‘There is nothing in this statement to support the hair & beauty sector. We’re a vibrant sector worth £5.8 billion to the UK economy, supporting thriving high streets, youth employment and community wellbeing. However, with 60% staff costs typical for sector businesses the Autumn Budget measures weigh heavily on the sector.

Today’s statement is a snub to hardworking female entrepreneurs in the sector who have been forgotten. We’re not mentioned in the Industrial Strategy and despite having a long history of giving valuable careers to young people, we’re missing out on targeted support for apprentices, with other sectors such as construction being prioritised. 

Our ‘Straightening out the costs’ report modelled the impact of the Autumn Budget measures (wage rises, NICs changed) on the sector - £139m overall, meaning £25,000 additional annual costs for a small sector business. Businesses are responding by increasing prices, reducing staff/apprentice hours and reducing the number of employees - on average 2.7 full-time equivalent staff and one apprentice per business. Overall taxes to the Exchequer are expected to decrease by 4% (£44m) and 19% (a significant 9000+ businesses) will shift to self-employed model further reducing tax receipts. It’s hard to see where growth fits into this - salons, young people and the government are all missing out.

We will continue to lobby the government for urgent VAT reform, targeted support for employers taking on apprentices, more flexible apprenticeships and business rates relief for those with multiple salons – for all businesses making a significant contribution to their local area’.