More than 2,000 UK salon owners have signed an open letter urging Chancellor John Healey to cut VAT on hair and beauty services from 20% to 10% in the Budget. Business owners warn that rising wage, pension, and National Insurance costs are crushing traditional salons and stalling apprenticeships.
Marcus Perkins and M&M Face Rising Operational Pressures
After operating a salon for 22 years, Marcus Perkins finds himself increasingly worried about the trajectory of the hair and beauty sector. Running M&M in Brierley Hill, Perkins has spent the past two decades training. But soaring operational expenses are threatening that pipeline.
This year alone, Perkins reported spending approximately £2,000 on training courses and travel costs to support training. Business proprietors across the UK point to concurrent increases in the minimum wage, pension obligations, and employer National Insurance contributions as severe constraints on their ability to hire and invest.
British Hair Consortium Backs Open Letter to Chancellor John Healey
To combat these financial strains, more than 2,000 proprietors have signed an open letter directed at Chancellor John Healey. The campaign, backed by the British Hair Consortium (BHC), calls for a reduction in Value Added Tax on hair and beauty services from 20% to 10% in the upcoming Budget announcement.
The BHC argues that lowering the tax rate would grant businesses the fiscal room needed to expand employment, strengthen apprenticeship pipelines, and keep storefronts active on local high streets. Financial strains and inconsistent training standards have prompted 53% of salon owners to reduce the number of apprentices they take on, according to a Future of Hairdressing report cited by the BBC.
Self-Employed Chair Rental Versus Traditional Employer Salons
Traditional storefronts increasingly compete against alternative business models centered on self-employed stylists who rent chairs rather than draw direct employment.
Perkins argues this dynamic establishes an uneven playing field. Traditional employer-run establishments shoulder the direct financial burden of training future hairdressers, while competing against lower-overhead independent operators who avoid those foundational training costs.
Among those who secured traditional training is stylist Trearna Hart. Having watched many of her college peers struggle to establish careers, Hart expressed gratitude for an employer willing to invest in her development.
Hair and Beauty Salons Drive UK Retail Spending
Official figures from the Office for National Statistics record 50,400 VAT or PAYE registered hair and beauty salons in the UK as of March 2025, compared with 49,300 in March 2024. Meanwhile, research from the British Beauty Council indicates that hair and beauty businesses account for nearly a third of all leisure sites across UK retail centers, matching the footprint of pubs, bars, and cafes combined while driving local spending and social connection.
Dorothy Senior, who has visited M&M for treatments over the past two decades, noted that the business offers far more than physical upkeep.
In response to the sector’s lobbying, a Treasury spokesperson acknowledged that hair and beauty businesses support local jobs, apprenticeships, and thriving high streets, noting that the industry has already benefited from recent business rates reforms. Government officials continue to defend adjustments to minimum wages and employer contributions as necessary steps to improve worker compensation, support public services, and drive economic growth.
