SUPPORT OUR SALONS... your say

Professional Beauty’s #SupportOurSalons campaign is calling for relief measures to mitigate the increased costs created in the Autumn Budget. We asked salon owners to share how the changes are impacting them

The Autumn 2024 Budget has left salon owners dealing with rising costs, putting the future of PAYE-employing and VAT-paying salons, as well as apprenticeships, at risk.

Professional Beauty, along with our sister title Hairdressers Journal, launched the #SupportOurSalons campaign, dedicated to sharing your stories and supporting the wider industry push to encourage Government to offer relief measures that will help mitigate the increased costs created in the Autumn Budget.

The rise in employer’s National Insurance contributions from 13.8% to 15% (and the scaling back of the threshold from £9,100 to £5,000) is set to disproportionately hurt the salon sector. Reports suggest that some salons will be forced to close, while others will cut staff and apprentices.

To inform our campaign and support the movement to effect change, we asked how the changes will affect your businesses. Here’s what you had to say...

How will the Budget announcements impact your business?

Lesley Caster, owner of City Retreat, Newcastle: “It will be a difficult time for the hair and beauty industry. Many salons are already facing closure or struggling to invest in essential areas like training, innovation and infrastructure. The challenges ahead are significant.

“For us, it will stunt growth as price increases will be a necessity. This will lead to less uptake of services as prices are deemed high already and our clients may find the cost of our services too high and vote with their feet. All of this will result in job losses, less VAT and income tax for the Government and more people forced on to benefits.”

Kathleen Birch, owner of Kathleen Birch, West London: “Luckily I have been trading for many years and have a very stable base and my business is where I want it to be. I would think twice about expanding following this Budget, though.

“This is another nail in the coffin of the beauty industry though. The industry has been changing for some time and I think these measures will stunt growth, especially in terms of salons taking on apprentices.

“However, what I consider more important is proper regulation, which would help the public have more confidence in our industry as a whole and make it clear which treatments are aesthetics and which are skincare. We need to lobby our MPs to support the changes needed.”

Clare Porter, owner of The Fountain Beauty Therapy, Guildford: “The Budget poses significant challenges for my business. The National Insurance changes alone will cost approximately £1,000 per employee annually, adding pressure to our overheads. While we already pay above minimum wage, this additional cost means future pay increases will need to be smaller and more tied to performance, which could affect staff morale and ability to retain top talent in the long term. I am particularly concerned about the impact on apprenticeships, an area I’m passionate about.”

Louise Tilden, owner of Louise Tilden Beauty Therapy, Taunton: “My costs will undoubtedly increase. My suppliers, especially those who employ staff, will have to increase their prices to meet the new financial demands imposed on them by the government, which will have a knock-on effect. To protect my own margin, I will need to pass this increase onto my customers when it happens.”

Have you already made any changes as a result of the budget announcements?

France Baudet, owner of Cannelle Medispa, Oxford: “As a result of the Budget, I did not replace two members of staff who resigned. Last year had already been very difficult. Consequently, I have now decided to sell the salon.”

Anita Hatch, owner, Anita’s Beauty Works, Eastbourne: “My costs will go up so my low prices will go up, and as I have an older clientele, I will struggle to retain my clients with the loss of fuel allowance and the increased cost of living.”

Clare Porter: “I increased treatment prices to offset rising costs and have locked in fixed rates for utilities and other overheads to minimise exposure to fluctuating expenses.

“As a salon with a team of five, I have also re-evaluated our staffing structure and training plans… We will be limiting our apprenticeship programme to one apprentice at a time. This decision was not made lightly, as I am deeply passionate about apprenticeships, but it reflects the reality of tighter margins and rising employment costs.”

Lesley Caster: “We increased prices in January and will implement a further increase in April should this be deemed necessary.”

MP responses

As part of our #SupportOurSalons campaign, Professional Beauty Group has been encouraging salon owners to contact their local MPs to explain the impact of the Budget on the beauty industry, and many of you have!

Clare Porter sent multiple emails to her MPs – the Conservatives’ Jeremy Hunt and Liberal Democrat Zöe Franklin – inviting them to visit her salon and hear firsthand how the beauty industry is being impacted. “I wanted to ensure they understand the challenges we face, from National Insurance increases to inconsistent industry classifications, which create confusion around grants and local authority support,” says Porter.

Thanks to her tenacity, both MPs visited her salon where she discussed important points like the impact of Covid-19 on the beauty industry and concerns over the decline in apprenticeships and its implications for future skills.

Jeremy Hunt visited Clare Porter at The Fountain Beauty Therapy

Porter adds: “Zöe visited first – she is a new MP. She had supported some salons during Covid-19 as a local councillor so had a little knowledge of the challenges. She did mention that as new MPs they were expressly advised not to overlook the beauty industry and that during her campaign many people approached her about concerns around lack of support for the sector – not just salon owners but also clients, which had surprised her.

“Aside from the HMRC issues, my main points were the fragmented state of the industry – not having a single cohesive voice and the need for regulation or similar to raise standards and professionalism.

“Jeremy Hunt did indicate that for regulation there are historically concerns that it wouldn’t necessarily bring growth, which of course a government would be looking to achieve. He also added that he thought the Home Office would be in support, though.”

Meanwhile, Louise Tilden contacted her local MP Gideon Amos, member of the Liberal Democrats. He replied with a letter, whic said: “Liberal Democrats oppose raising employers’ National Insurance, it is a tax on jobs that will deal a hammer blow to small businesses and struggling care providers. The Government should raise the money we need by reversing Conservative tax cuts for the big banks or asking the social media giants to pay their fair share.

“We will continue to push the Government to take the measures necessary to protect small businesses. I recently spoke in a debate on business rates to oppose plans to cut the business rate relief on retail, hospitality and leisure.”