More than 2,000 salon owners have signed an open letter urging Chancellor John Healey to cut VAT on hair and beauty services from 20% to 10% in this week's Budget, citing mounting cost pressures that are threatening the viability of traditional businesses.
Marcus Perkins, who has run a salon for 22 years, said rising costs are making it harder for businesses to employ staff and invest in apprenticeships. He expressed concern about salons closing on high streets and fears for the future of his own business. The British Hair Consortium (BHC), which backs the campaign, argues that rising business costs are placing increasing pressure on traditional salon employers. Salon owners say they have been affected by increases in wage, pension and National Insurance costs. The government's changes to employers' National Insurance contributions and increases to the minimum wage have been defended by ministers as part of wider efforts to improve pay, support public services and drive economic growth.
The sector has seen growing numbers of stylists move into self-employed arrangements, with hairdressers often renting a chair within a salon rather than being directly employed. Perkins believes businesses that employ and train staff are increasingly competing against models centred on self-employed workers, creating an 'unlevel playing field' because traditional salons often shoulder the costs of training future hairdressers. The BHC claimed apprenticeship numbers had fallen sharply and warned the trend could worsen if pressures on employer-run salons continued.
Trearna Hart, a 21-year-old stylist, said many of her peers had struggled to establish careers after leaving college. She said she was fortunate to find an employer willing to invest in her development and expressed concern about the number of salons disappearing from high streets. Perkins said he had spent about £2,000 this year on courses and travel costs to support her training. Hart warned that 'at the rate it's going we're not going to have many salons left open and there's no-one going to be able to do hair.'
The BHC said a reduction in VAT would help businesses take on more staff, invest in training and keep more salons trading on the high street. A Treasury spokesperson said hair and beauty businesses played an important role in supporting jobs, apprenticeships and thriving high streets, and added that the sector had benefited from reforms to business rates. Research from the British Beauty Council highlighted the role hair and beauty businesses play in supporting local high streets and providing opportunities for social connection.