On April 23, 2025, the UK Parliament held a debate focusing on the hair and beauty industry's economic significance and the challenges it faces.
The debate, organised by Julia Lopez MP for Hornchurch and Upminster, was welcomed by members of the industry after hundreds of hairdressers took to the streets outside of Parliament to take part in the Salon Owners and Employers action day on March 17 in central London.
Speaking ahead of the debate Julia said: "I’ve secured a debate in Parliament next week to raise concerns about the challenges facing hairdressers and beauty salons. Local salon owners have told me how recent changes — like reduced business rate relief and higher national insurance costs — are hitting their businesses hard on top of existing challenges like VAT. This is a highly skilled, labour-intensive industry that’s getting squeezed from all sides. Many are having to rethink how they operate just to stay afloat, including shedding apprentices who are getting their first break. I want to make sure ministers hear what that means for real businesses on our high streets and the people they serve and employ. I don’t want to see the loss of such valuable, taxpaying entrepreneurs from town centres, to be replaced with dodgy front businesses that disguise criminal activity, don’t play by the rules and fail to contribute to the community."
Key Points Raised in the Debate
MPs debated the significant pressures facing the hair and beauty industry, particularly rising operational costs, National Insurance (NIC) hikes, and the ending of business rates relief. These challenges have raised concerns about the future viability of salons, especially in light of shrinking profits and the increasing cost of doing business. Key issues highlighted included the impact on apprenticeship funding, the rise of "rent-a-chair" self-employment models, and the sector’s reliance on women-led businesses, many of which are part-time or in regions with high rates of unemployment.
The debate began with the Hon. Member for Hornchurch and Upminster, Julia Lopez, who underscored the growing frustrations of small salon owners, "crushed by the weight of tax demands." She pointed out that these entrepreneurs, who often take significant personal financial risks to build and maintain their businesses, feel penalised for doing everything by the book. "The crisis now gripping the hair and beauty sector is a stark example of the consequences," Lopez stated, stressing the importance of giving a voice to those affected.
One of the central concerns was the increasing difficulty of offering apprenticeship opportunities to young people, with many salons unable to afford the training costs amidst soaring operational expenses. MP Cat Eccles from Stourbridge shared insights from her constituent, Tim Scott-Wright, who warned that rising national insurance and wage increases could force him to cut back on apprenticeships. He also flagged the growth of self-employment models, which, while reducing overheads, may result in lost training opportunities and inadvertent tax avoidance.
Dame Caroline Dinenage, MP for Gosport, echoed these concerns, pointing to the serious risk that rising business costs are pushing small, female-led businesses to the brink. Dinenage noted that many local barbers are no longer able to train apprentices due to the financial pressures. "The sector is not just about how people look," she stated, "but is vital to communities." She further emphasised that the hair and beauty industry, worth £5.8 billion, provides essential services and is a major contributor to local economies.
Meanwhile, MP Sarah Gibson for Chippenham described the current situation as a "perfect storm," with businesses reeling from the aftermath of the pandemic, inflation, and high tax burdens. She specifically highlighted the impact of rising NICs, which could add over £40,000 to payrolls for many businesses. Additionally, Gibson pointed out that small salons, often training young people from disadvantaged backgrounds, were struggling to offer apprenticeships. She called for a more flexible skills and training levy that would better suit the needs of small businesses.
Government representatives, including Gareth Thomas, Parliamentary Under-Secretary of State for Business and Trade, acknowledged the industry's concerns but defended recent fiscal decisions. "Opposition Members may not like to hear this," Thomas remarked, "but the Government inherited a very challenging fiscal position, so we had to make some very difficult decisions on tax, spending and welfare." He noted that some of the measures in the autumn budget, including an increase to the employment allowance, were designed to protect the smallest businesses, with many hair and beauty salons benefiting from these changes. However, he also acknowledged that the sector had faced significant challenges over the past decade, exacerbated by the pandemic and the rising cost of living.
Despite the Government’s position, MPs warned that more needed to be done to protect the hair and beauty sector, particularly for women in leadership roles and part-time workers. With many salons struggling to stay afloat, the debate highlighted the urgency of supporting these vital businesses that serve local communities, provide jobs, and foster young talent. Calls for a VAT reduction and a more flexible apprenticeship funding system were among the key solutions proposed to help secure the industry's future.
MPs reiterated their commitment to continuing to advocate for the sector and to push for changes in policy that would provide long-term sustainability.
Response From the Industry
The NHBF has made a public thank you to the MPs who took part in a debate in Parliament about the hair and beauty sector yesterday, Wednesday 23rd April 2025. All MPs were sent a copy of the Straightening Out the Costs report beforehand, which Harriet Baldwin MP used as part of the debate. The NHBF’s Industry Statistics and State of the Industry reports were also referenced. The Minister Gareth Thomas responded saying that the sector is benefiting from increased support through the Employment Allowance, fairer business rates for the retail sector and increased enforcement activity on the high street. A small business strategy to be published later in the year will set out a range of support and NHBF will be meeting the Minister at the next sector roundtable meeting next month to discuss this in more detail. Caroline Larissey, NHBF chief executive said: "The parliamentary debate on the hair and beauty sector marks a significant step forward in recognising our sector's economic contribution and challenges. We're encouraged by the Minister's acknowledgment of increased support measures and particularly welcome the upcoming small business strategy. Our Straightening Out the Costs report has clearly resonated with MPs, and we look forward to building on this momentum at next month's sector roundtable to ensure the voice of our Members continues to be heard at the highest levels of government."
