Full Breakdown
Salon owners urge VAT cut as rising costs threaten UK hair and beauty sector
By Drooid · · How we work
Industry pressure and the VAT appeal
Salon proprietor Marcus Perkins, who has run M&M Spa in Quarry Bank for 22 years, says escalating expenses are making it harder to retain staff and fund apprenticeships. He and more than 2,000 other salon owners have signed an open letter to Chancellor John Healey asking that the value-added tax on hair and beauty services be reduced from the current 20 % to 10 % in the upcoming Budget. The British Hair Consortium (BHC) backs the request, arguing that the tax burden is squeezing traditional, employer-run salons.
Shifts in business models and employment
Industry research notes a growing trend toward self-employment, with many stylists renting chairs rather than being directly employed. This model is promoted for its independence, flexibility and higher earnings, but it also creates an “unlevel playing field” for salons that must shoulder training costs. The British Beauty Council reports that hair and beauty outlets now comprise almost one-third of leisure sites in UK retail centres, matching the combined presence of pubs, bars and cafés.
Data and statistics
- 2,000+ salon owners have signed the VAT-reduction letter.
- 20 % is the current VAT rate; the proposal seeks to cut it to 10 %.
- 53 % of salon owners say they have reduced the number of apprentices they train, according to the *Future of Hairdressing* report.
- Perkins spent roughly £2,000 this year on courses and travel to support a trainee stylist.
Official statements & responses
A Treasury spokesperson highlighted the sector’s role in supporting jobs, apprenticeships and vibrant high streets, noting that recent business-rates reforms have benefited hair and beauty businesses. The BHC contends that a VAT reduction would enable salons to hire more staff, invest in training and keep more locations operating on high streets.
Verbatim quotes
- “We help people, we train, we nurture, we mentor. We help the next generation because if we don't help the next generation, what happens to our future?” — The BHC
These developments underscore the sector’s concern that without fiscal relief, the decline of traditional salons could accelerate, limiting training opportunities and reducing the social value they provide to local communities.