Hairdressing & beauty sector facing existential crisis – jobs & apprenticeships forecast to be decimated

Hairdressing salon owners are calling on Chancellor Rachel Reeves to throw the sector an economic lifeline, with a new report highlighting how an unbalanced tax system is decimating their industry – and warned that unless things change, there will be no new apprenticeships by 2027 and a 93% fall in employment by 2030. This would leave very few in employment, creating a sector largely devoid of the employment rights that come with being an employee.

The Hairdressing Council has been an integral part of the drafting of the report which is available here: CBIE Report for the BHC and calls for Government to support high street employed salons through a change to VAT, support for covid debt, support for apprentices and business rates relief. 

VAT reform has the potential to arrest sector decline – A split-rate VAT model could be cost-neutral, or even positive with a gain of £0.75bn by 2030 if deregistration is halted. The gain could rise to £1.5bn if registration levels are restored to their historic levels.

Hairdressing and beauty businesses drive persistent year-round demand and are largely immune to the rise of online shopping, making them essential for maintaining urban vitality and resilient high streets.