Rachel Reeves places hairdressers on the brink | Politics | News | EUROtoday

Traditional excessive avenue hair salons face “devastation” on account of Treasury selections. The hike in National Insurance contributions, larger enterprise charge payments and will increase within the minimal wage have despatched prices hovering.

Chancellor Rachel Reeves stands accused of “shattering women-led businesses” and delivering one other blow to Britain’s struggling excessive streets. Hayley Clayden, of the Vanilla Room salon in Hornchurch, east London, mentioned the impression of the hike in employers’ National Insurance contributions has been “massive”. Taken along with different Budget measures, she mentioned the enterprise faces further prices of £1,000 per week.

She mentioned: “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 likely be worse off if Treasury selections power institutions to make cuts.

“People are having to cut jobs so the Government itself will actually end up with less income,” she mentioned.

The British Hair Consortium warns there will likely be “no apprentices” left within the sector by 2027 except there’s pressing reform.

There are robust issues that as a substitute of taking up apprentices who will then turn into long-term members workers, salons are more and more making an attempt to avoid wasting money by switching to a enterprise mannequin underneath which staff are formally self-employed.

Ms Clayden mentioned 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 mentioned salons face “total devastation”.

He mentioned: “There’s no new blood coming in.”

Mr Dicker pointed to a CBI Economics evaluation for the British Hair Consortium which suggests the variety of self-employed staff within the hair and wonder sector may hit 225,532 by the tip of the Parliament, with the variety of workers slumping to six,468.

The consortium warns of “disguised employment”, stating that is “often done to avoid VAT registration or paying other labour-related taxes such as employers’ national insurance contributions”.

Mr Dicker says at current the UK has a tax system which penalises individuals for being employers. The sector is pushing for a VAT lower to assist salons keep afloat.

Conservative MP Julia Lopez – who has secured a debate in Westminster on Tuesday on the plight of the hair and wonder sector – mentioned Ms Reeves was “shattering women-led businesses,” including: “Legitimate high street salons are being taxed to the brink, risking dodgy businesses moving in.”

Shadow Chancellor Mel Stride mentioned the Government is “loading up taxes on employing people”. He warned that if salons are pressured to shut this may go away excessive streets “hollowed out”.

He mentioned: “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.”

Phoebe Twiss, 30, who was having a haircut on the Hornchurch salon when Mr Stride visited, was appalled on the prospect of such institutions going out of enterprise.

She mentioned: “It would be so sad. These kind of places are the lifeblood of the community, aren’t they?”

The push for motion to cease hairdressers going underneath comes because the “Stop the Taxi Tax” marketing campaign pleads for the Government to not impose a 20% VAT charge on minicab rides. A session was held final 12 months on the VAT remedy of personal rent autos.

A spokesperson mentioned: “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 mentioned: “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.”