Written Submission from Faces Hair & Beauty (SBS0044)

On a recent discussion with my local MP Pam Cox she was under the impression our industry was thriving - as everyone surely needs to get a haircut! Our industry is coming together and lobbying hard to raise awareness and to TRY to save our industry before it’s too late!

My husband and I currently run a salon in Colchester, Essex on the smartest street in the city. We employ 14 including currently 5 apprentices.

Up until January 2024 we ran 2 providing employment for 8, however we had no alternative but to close the door on our first salon for good – established some 50years ago – a casualty of the demise of the town/city centre. Sadly with very little government, local government and bank support! It’s easy to start a business however it is tough out there particularly if you employ staff!

The reality is that we haven't recovered from lock down. Our industry works under 2 models - Rent a Chair/Self Employed (where young hairdressers are at risk of being exploited and not paid even the minimum wage) and VAT isn't paid so considerably lower overheads, and the other model is where hairdressers are employed and the Salon is training the hairdressers of the future, pays wages, NIC's, Nest, exorbitant overheads (energy costs etc.) and VAT! 

Having the ability to employ and train the next generation of hairdressers is imperative to our survival. This CAN be achieved by reducing VAT and in turn levelling the playing field - releasing vital funds for investment and growth!

A quick solution would be to have mandatory regulation to force out illegal barbershops/nail bars, 10% VAT (easy to implement as per the recovery of hospitality after lockdown) and a lowering of the threshold. Reducing the VAT threshold in line with the Irish system – this would remove the incentive to deliberately hold back turnover – and in turn this would incentivise growth!

Unless action is taken now by 2027 there will NOT be any apprenticeships as Salons where everyone is employed will no longer exist as we are forced to work in a Rent a Chair/Self-employed way avoiding contributing to HMRC to simply make a living to survive!