Calls to slash hairdressers’ VAT amid industry crisis

Hairdressers are calling on the government to rethink how VAT is applied to their sector in next week’s Budget as businesses say they are struggling to make a profit and find staff.

The British Hair Consortium (BHC), which represents 50,000 UK hairdressers, is calling on the government to halve the VAT salons pay on labour costs to 10%.

Nina Macias, an apprentice at The Chapel salon in Tunbridge Wells, Kent, says: “It’s crazy everywhere at the moment. I hear of salons closing and apprentices losing their jobs.”

A Treasury spokesperson said: “The Budget will build stronger foundations to secure Britain’s future, cutting waiting lists, cutting the national debt and cutting the cost of living.”

Toby Dicker, co-founder of The Chapel said it was a “declining industry with the number of apprentices also declining”.

Mr Dicker said: “If something isn’t done right now it could be the end of employment and apprenticeships in our industry.

“Britain has been at the forefront of the industry for decades.

“Hairdressing salons bring people together in the community and provide young people with a career path.”

A report, produced by BHC in February, called for the government to provide urgent financial support.

Sree Kochugovindan, an economist, said: “In this year’s Budget what the government is trying to do is shift the tax burden away from small family businesses towards the bigger companies.

“They are talking about making things easier for high street firms, including hairdressers, but it is difficult to balance the budget maths.”