House of Commons · Westminster Hall
23 April 2025 · 11 other contributors · 9,703 words
Opened by Julia Lopez Con Hornchurch and Upminster
Responding minister: Gareth Thomas
Summarised by AI from the official record, so it can contain mistakes.
Julia Lopez raised concerns about hair and beauty sector: government policy in Westminster Hall. A government minister responded.
Key points
Key requests to Government
The lead MP asks for measures such as VAT reform and support for high street salons facing rising costs to help keep these vital businesses alive.
MPs spoke in turn to share their views and ask questions. Here's what each person said.
Opened the debate
Salons face pressures including VAT, increased rent and utilities costs, withdrawal of business rates relief, and an increase in employer national insurance contributions. These factors are pushing many businesses to the brink and rewarding those operating outside traditional premises.
Costa highlights the impact of government policies on hair salon apprenticeships, agreeing that expensive hiring practices discourage salons from retaining apprentices.
Highlights the closure threat faced by a long-standing salon in his constituency due to severe financial pressures exacerbated by government policies. Emphasises the need for fair competition and support for ethical businesses.
Tim Scott-Wright, owner of an international-award-winning hair salon in Wollaston, fears he cannot take on any apprentices this year due to increased NICs and the national minimum wage increase. Salons are operating on slim profit margins with unsustainable VAT rates. Acknowledges the significant economic contribution of the hair and beauty sector and its role in female entrepreneurship.
A small salon owner in Gosport has experienced her most challenging period due to rising labour costs by over £25,000. This forces people into the black economy or out of business altogether, making 1,000 apprenticeships unaffordable. Argues that the measures are retrograde steps, leading to a decrease in tax take and employment opportunities.
Reaffirms the importance of hair salons to local economies and community wellbeing, criticising recent Government decisions that have exacerbated financial pressure on small businesses in the sector.
Speaks on behalf of constituents who have contacted him regarding the impact of increased costs and VAT rates on hair salons and beauty businesses in their communities.
Highlights concerns about unregulated aesthetic medicine practices, citing a tragic case where a constituent died after undergoing non-surgical treatments. Calls for Government to follow up on previous consultations and legislate to ensure people’s safety. Highlights the importance of hair and beauty businesses in supporting local economies and generating footfall on high streets.
Saqib Bhatti discusses the impact of the Chancellor's Budget on nurseries and small businesses, noting the challenges faced by hair and beauty salons due to increased NICs, reduced tax thresholds, and competitive market pressures.
Sarah Bool highlights the contribution of the hair and beauty sector to the UK economy, supporting over 224,000 people. She emphasizes the urgent need for help from businesses in her constituency facing difficulties due to increased national insurance contributions and changes in business rate relief.
Highlights the impact of employer national insurance contributions, forced self-employment trends, and challenges to hosting apprentices. Calls for a more flexible skills and training levy. Questions the reduction of the threshold at which national insurance contributions kick in, suggesting it is counterproductive for small businesses.
Concerned about the proliferation of illegal barbershops as a front for criminal activity, highlighting detailed exposés from The Sunday Times and the Evening Standard. Raises concerns about tax avoidance and criminal activity among illegal barber shops linked to money laundering.
Government Response
Gareth ThomasThe Parliamentary Under-Secretary of State for Business and Trade
Commends MPs for supporting hair and beauty businesses across the UK, highlighting regular engagement with the sector through meetings and roundtables. Acknowledges the economic importance of the industry contributing £25 billion to the UK economy and employing over 550,000 people. Emphasises the role of the sector in female entrepreneurship and mental health support. Recognises challenges faced by high street businesses during the pandemic and cost of living crisis. The Government protected small businesses as much as possible in the Budget by increasing the employment allowance and creating a fairer business rates system. They will continue to support law enforcement partners to tackle high street crime, including operations against rogue operators. The small business strategy will focus on boosting support for businesses.