“More than half of PAYE employers are now considering closing their businesses within the next 12 months, and seven in ten are unsure whether they will still be trading this time next year. These are not abstract figures; these are salon owners employing teams, training apprentices and trying to hold businesses together while costs spiral.
We have warned the Government what would happen if rising costs were ignored. We warned that placing 20% VAT on a labour-intensive service industry, increasing Employer National Insurance, driving up business rates and allowing apprentice wages to rise by 93% since Covid, would push employer-led salons to the brink. We warned that without reform, the employed model, the backbone of training and long-term careers would become unsustainable.
Instead, policy decisions were influenced by narratives that combined retail and manufacturing with hands-on service. Product sales and manufacturing growth were presented alongside salon services as evidence of sector strength, but that growth did not reflect the day-to-day reality of service businesses operating on high streets across the UK. Now the service sector is paying the price for that misinformation.
Employment costs are rising faster than revenue. Apprenticeships are becoming unaffordable. Confidence is falling. Mental health among employers is deteriorating. The traditional employed salon model is under real threat. However, this is not just a moment of crisis; it is also a moment of opportunity.
We now have the opportunity not only to save the sector, but to unite it, grow it and build it back stronger and more sustainable than ever before. The British Hair Consortium is firmly established and recognised by the Government as a voice of industry, representing every salon owner, barber, freelancer, educator and apprentice across hair, barbering and beauty.
This is not about individual brands or organisations; it is about one profession standing together to secure a sustainable future.
If we unite around the key priorities – which are VAT reform for labour-intensive services, meaningful apprenticeship support, fair business rates, a level playing field and proper regulation – we can protect jobs, defend standards and rebuild confidence. If we remain divided, we risk losing the employed model entirely. Our future depends on unity.”
Read the full ‘Real State of the Industry’ survey: HERE
