After 22 years running a salon, Marcus Perkins says he is increasingly worried about the future of the hair and beauty industry. Rising costs are making it harder for businesses to employ staff and invest in apprenticeships, he says, while more salons are turning to self-employed models to survive. "Seeing salons close on the high street is very scary," he said.
Luckily it hasn't happened yet but who knows what the future holds?" Perkins is among more than 2,000 salon owners who have signed an open letter calling on the Chancellor John Healey to cut VAT on hair and beauty services from 20% to 10% in this week's Budget. The letter is backed by the British Hair Consortium (BHC), which argues rising business costs are placing increasing pressure on traditional salon employers. However, the industry has also seen growing numbers of stylists move into self-employed arrangements, with hairdressers often renting a chair within a salon rather than being directly employed.
A Treasury spokesperson said hair and beauty businesses played an important role in supporting jobs, apprenticeships and thriving high streets. They added that the sector had benefited from reforms to business rates. Salon owners say they have also been affected by increases in wage, pension and National Insurance (NI) costs.
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. 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. What is the Budget and what could be in it?
Chancellor says he will cut 'pointless paperwork' to save businesses up to £800m Perkins believed it would make a significant difference. "We can grow the business and employ more people," he said. The salon owner runs M&M Spa in Quarry Bank, near Brierley Hill, where he says he has trained more than a dozen young people over the past two decades.
Among them is 21-year-old stylist Trearna Hart, who 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. This year alone, Perkins said he had spent about £2,000 on courses and travel costs to support her training.
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