Following the Autumn Budget announced by Chancellor Rachel Reeves in the House of Commons on Wednesday 30 October 2024, Modern Barber's sister publication Hairdressers Journal International (HJ) has launched the #supportoursalons campaign.
HJ and Modern Barber have seen just how the Autumn 2024 Budget has affected hairdressers, barbers and the personal services sector – from the increase in National Insurance Contributions, to the impact the Budget will have on apprenticeships.
The Professional Beauty Group is therefore launching the #SupportOurSalons campaign, dedicated to sharing your stories, as well as reporting on any changes to legislation. Join our campaign to get your voice heard.
The group believes that the rise in National Insurance (and scaling back the allowance to £5k) is disproportionately hurting the salon sector with surveys suggesting that some salons will be forced to close, while others will cut back staff and apprenticeships. This will have a long-term effect on our industry, and the measure could drive business underground, with people potentially using self-employment contracts which will have a negative effect on HMRC’s revenue.
Join our campaign and write to your MP. Why not write an email or letter to your MP and invite them into your salon to experience just how amazing our sector is?
Head to this link to find your MP.
To help you get started, we've drafted an email for you to adapt. Keep scrolling to the end of the article to see the draft.
In October, a survey carried out by the British Hair Consortium* found that...
95% of those that employ apprentices said that they will reduce the number of apprentices they have, not take on any more apprentices or already have made apprentices redundant.
94% are either extremely concerned for the future or believe a generation of apprentices will be lost.
98% of respondents do not believe our sector is valued by the government.
80% of respondents are considering switching to self-employment (even if it isn't lawful) but feel forced to do so in order to survive.
We'd love to hear from YOU. Fill out this form to have your say on how the Autumn Budget will affect you and your business.
Autumn Budget 2024: The Key Facts
A breakdown of the key factors that will impact barbers and the hair industry.
Minimum Wage Increase
The government has announced a rise in the minimum wage from April 2025 with the following new rates:
National Living Wage (21 and over): £12.21 per hour
18-20 year olds: £10.00 per hour
16-17 year olds: £7.55 per hour
Apprentices: £7.55 per hour.
National Insurance (NI) Freeze for Employees
The Chancellor has committed to not raising NI rates for employees, but this freeze does not apply to employers. Employers’ National Insurance contributions will rise from 13.8% to 15%. The threshold at which businesses start paying National Insurance on a workers’ earnings will be lowered from £9,100 to £5,000. The Employment Allowance will increase from £5,000 to £10,500, which the chancellor says will mean 865,000 employers won’t pay any National Insurance at all next year.
Tax Simplification and Digitalisation
This could benefit hairdressers by streamlining tax compliance and potentially reducing admin.
Business Rates Relief Decrease
The 75% relief for eligible RHL properties is reduced to 40% for 2025-26, with a maximum discount of £110,000.
Corporation Tax Capped
Corporation Tax will stay capped at 25% and VAT rates are not anticipated to change.
Letter Template to Write to Your MP
Att: [Insert MP’s name here]
Dear [First Name],
I’m writing as your constituent to express my concern over the Government’s announcement to raise employers’ National Insurance as well as reduce threshold of when NI is paid.
Salaries and employment costs account for 50% of the total costs of running my business and so the rise in National Insurance imposes a much higher burden on my salon than many other businesses.
We offer labour intensive touch based treatments which we cannot automate. The impact of the National Insurance rise means I am seriously considering a reduction in staff numbers. The cost impact also means that I will no longer be able to afford to take on an apprentice.
I understand that Government finances are under pressure and Government needs to raise money but if there is anything that could be done to help the salon sector, I know you’d have huge gratitude from tens of thousands of small business owners.
It must be tough being an MP; being asked for help all the time and no doubt moaned at by many. I’d very much like you to come in for a complimentary treatment so you and experience first-hand just how good our hair (or beauty) services are. I promise you a warm welcome and a great treatment. Please give me a call on [insert your number] or message me on x
Looking forward to seeing you in our salon soon
Best regards
Your name & contact details
