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Mon, 26 Oct 2026

Mon, 26 Oct 2026 Salon owners urge Budget VAT cut as staffing pressures grow

Marcus Perkins, who owns a hair and beauty salon in Brierley Hill, says he is scared for the future.
The hair and beauty industry is facing significant challenges due to rising costs, which are making it harder for salons to employ staff and train apprentices. Salon owner Marcus Perkins has been running his business for 22 years and is worried about its future. He believes that a reduction in VAT from 20% to 10% would make a big difference and allow him to grow the business and hire more people. However, many salons are struggling to stay afloat due to increasing costs such as wages, pensions, and National Insurance contributions. Some salon owners have turned to self-employed models to survive, which creates an "unlevel playing field" as traditional salons often shoulder the costs of training future hairdressers. The British Hair Consortium (BHC) has signed an open letter calling on Chancellor John Healey to reduce VAT on hair and beauty services. The BHC argues that this would help businesses take on more staff, invest in training, and keep more salons trading on the high street. Stylist Trearna Hart fears that fewer salons will be able to train the next generation of hairdressers due to the pressures facing traditional salon employers. Salon owners like Perkins are worried about the impact on their business and the industry as a whole. Research from the British Beauty Council highlights the role that hair and beauty businesses play in supporting local high streets, encouraging spending, and providing opportunities for social connection. Customers also value the personal experience of visiting salons, which is not just about having their hair done but also about the overall package. The government's changes to employers' NI 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. However, salon owners like Perkins believe that a reduction in VAT would be a significant boost to their businesses and help them to invest in training and staff.