The beauty and hair industry's calls for a lower rate of VAT for our service-led market were not answered in this Budget.
However, the announcement included a VAT registration threshold increase, a cut to national insurance by 2p, and an extension on the Government loan scheme for small businesses.
Jeremy Hunt has said the Office for Budget Responsibility expects the economy to grow by 0.8% this year and 1.9% next year – 0.5% higher than the autumn forecast, adding this growth is expected to continue on this trend until 2027.
• The VAT registration threshold will increase from £85,000 to £90,000 from April 1.
• There will be a cut to National Insurance by 2p from April 6.
• An extension on Covid-era Government loan scheme for small businesses until March 2026.
• A continuation of Government funding for those struggling with cost-of-living pressure for another six months.
• UK’s inflation rate to fall below 2% in a few months.
• Increase to child benefit earning threshold.
• A 5p cut on fuel duties has been extended for 12 months.
Caroline Larissey, chief executive at the National Hair & Beauty Federation said:
"We’re pleased...with the raising of the VAT threshold, taking into account inflation. However, there’s more to do. We welcome further discussions with HM Treasury around future VAT reform to ensure a fairer system and to help level the playing field in the hair and beauty sector, including options for reduced rates and tiered rates around the threshold.
She continued: "However, the silence was deafening on support for apprentices. National Insurance (NI) cuts will benefit the self-employed but where is the support for employers?
"With wages rising in April, few small and micro sector businesses can afford to take on staff and apprentices and grow the sector. We call on the government to support these businesses, largely female entrepreneurs, bolstering the high street and championing wellbeing in the community."
Original article written by Eve Oxberry for Professional Beauty and found here
The hair and beauty industry in the UK has long relied on a global network of suppliers for everything from salon furniture to luxury skincare. But with the introduction of new tariffs and mounting economic pressures, salon owners are facing a shifting landscape
READ MORE...With the new season comes new opportunities, and this is your sign to pause, reflect and reset. Here are five fresh, actionable ways to bring a spring mindset to your beauty business
READ MORE...On March 26, Chancellor Rachel Reeves shared the Spring Statement, reflecting on the changes made in 2024's Autumn Budget, and announcing adjustments for the forecasts ahead
READ MORE...