The National Hair & Beauty Federation’s (NHBF) latest State of the Industry survey underscores the need for targeted government support to safeguard jobs, training opportunities and the long-term sustainability of high street barbershops and salons amidst mounting financial and recruitment challenges.
At present, 40% of businesses are still managing to turn a profit and a further 39% are breaking even, however signs of pressure are increasing. More businesses are reporting losses (21%, up from 17% in January), and turnover expectations have worsened, with 30% expecting a decline over the next three months. Nevertheless, many businesses continue to adapt by raising prices (74%, the highest recorded to date) managing costs and finding ways to remain competitive.
The sector is particularly impacted by recent changes to wage rates and National Insurance thresholds. Increased employment costs are affecting recruitment, with only 8% of businesses likely to take on new staff and just 5% planning to recruit apprentices – a concern for the future skills pipeline. Business confidence in long-term survival has dipped, although a 68% remain hopeful.
Caroline Larissey, Chief Executive of the NHBF, said: “Despite considerable pressures, it’s clear that many hair and beauty businesses are showing real resilience. But they cannot do it alone. With the right support – from VAT reform to practical help with apprenticeships and energy bills – we believe this sector can not only recover, but grow. The NHBF is committed to ensuring our Members have the guidance, resources and representation they need to thrive. We urge government to act decisively to unlock the full potential of this vibrant industry.”
What Support Can the Government Provide to Barbershops and Salons?
1. VAT reform, including reduced or tiered rates to support growth
2. Apprenticeship funding of at least £3,000 per employee to address affordability
3. Retention of business rates relief for small, high street businesses
4. Energy cost flexibility and support, particularly for small and micro businesses
5. Stronger enforcement against tax-evading operators that undermine legitimate employers
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