There are fears for the future of salons as business costs mount (Image: Getty Images/iStockphoto/Antonio Diaz)
Traditional high street hair salons face “devastation” as a result of Treasury decisions. The hike in National Insurance contributions, bigger business rate bills and increases in the minimum wage have sent costs soaring.
Chancellor Rachel Reeves stands accused of “shattering women-led businesses” and delivering another blow to Britain’s struggling high streets. Hayley Clayden, of the Vanilla Room salon in Hornchurch, east London, said the impact of the hike in employers’ National Insurance contributions has been “massive”. Taken together with other Budget measures, she said the business faces extra costs of ￡1,000 a week.
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She said: “We’ve had to make the decision to reduce our apprentice numbers by one ... It’s not what we want to do.”
Ms Clayden warned the Government will be worse off if Treasury decisions force establishments to make cuts.
“People are having to cut jobs so the Government itself will actually end up with less income,” she said.
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Hayley Clayden, business co-ordinator of the Vanilla Room salon in Hornchurch (Image: Phil Harris)
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The British Hair Consortium warns there will be “no apprentices” left in the sector by 2027 unless there is urgent reform.
There are strong concerns that instead of taking on apprentices who will then become long-term members employees, salons are increasingly trying to save cash by switching to a business model under which workers are officially self-employed.
Ms Clayden said if Ms Reeves visited the Hornchurch salon she would ask her: “Who’s going to cut you hair in the future if there are no apprentices?”
Toby Dicker of the Salon Employers Association said salons face “total devastation”.
He said: “There’s no new blood coming in.”
Mr Dicker pointed to a CBI Economics analysis for the British Hair Consortium which suggests the number of self-employed workers in the hair and beauty sector could hit 225,532 by the end of the Parliament, with the number of employees slumping to 6,468.
The consortium warns of "disguised employment", stating this is "often done to avoid VAT registration or paying other labour-related taxes such as employers' national insurance contributions".
Mr Dicker says at present the UK has a tax system which penalises people for being employers. The sector is pushing for a VAT cut to help salons stay afloat.
Conservative MP Julia Lopez – who has secured a debate in Westminster on Tuesday on the plight of the hair and beauty sector – said Ms Reeves was “shattering women-led businesses,” adding: “Legitimate high street salons are being taxed to the brink, risking dodgy businesses moving in.”
Shadow Chancellor Mel Stride said the Government is “loading up taxes on employing people”. He warned that if salons are forced to close this will leave high streets “hollowed out”.
He said: “We all like to see the odd charity shop but we don’t want to see loads of charity shops and no businesses alongside them.”
Shadow Chancellor Mel Stride warns of the threat to high street hair salons (Image: Phil Harris)
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Phoebe Twiss at the Vanilla Room in Hornchurch (Image: Phil Harris)
Phoebe Twiss, 30, who was having a haircut at the Hornchurch salon when Mr Stride visited, was appalled at the prospect of such establishments going out of business.
She said: “It would be so sad. These kind of places are the lifeblood of the community, aren’t they?”
The push for action to stop hairdressers going under comes as the “Stop the Taxi Tax” campaign pleads for the Government not to impose a 20% VAT rate on minicab rides. A consultation was held last year on the VAT treatment of private hire vehicles.
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A spokesperson said: “The taxi tax would be the latest tax rise that will make the British people worse off and harm vulnerable people the most.”
A Treasury spokesperson said: “We delivered a once-in-a-Parliament budget that took necessary decisions on tax to stabilise the public finances, including the NHS which has now seen waiting lists fall five months in a row.
“We’re also levelling the playing field for high street businesses, including hairdressers, by permanently cutting business rates and removing the ￡110,000 cap for over 280,000 retail, hospitality and leisure business properties from April 2026, while also protecting the smallest businesses from the employer National Insurance rise and late payments.”