BBC
Mr Perkins wants the government to speak to business owners urgently
Hair and beauty salon owners in the West Midlands say potential tax increases in Labour’s first budget could have a dire impact on an already struggling industry. I’m warning you.
Marcus Perkins of M&M Spa in Brierley Hill hopes the Salon Employers Association (SEA) will address the “unequal tax burden” placed on VAT-registered salons in the budget. are.
“I’m very concerned. People in the industry are getting together and talking to each other because you don’t really know whether you’re going to be accused or not, and we always are,” he said. Ta.
Chancellor Keir Starmer said tax increases were needed “to stop austerity and rebuild public services”.
The SEA is calling for urgent reform as it claims high street salons are struggling to stay afloat under heavy tax obligations.
They argue that current rules allow small businesses to avoid VAT altogether, creating an unbalanced system that disadvantages large salons that pay VAT.
Another concern for the industry is the gradual decline in the number of people taking apprenticeships.
That number has decreased by 19% since 2021, according to the American Barbering and Cosmetology Federation.
Perkins looks forward to further action from the new government.
He said: “This is my livelihood and I pay my mortgage, but I also employ people so I’m very worried.”
“We have the ability to show how our business model works, explain what we do as a community-run salon and show that we are needed on the high street. We need support and conversation to show.
“All the big salons that are hiring are finding it difficult to retain staff.
“Because for them to leave, you can invest £3,000 to £4,000 in training.
“We need help. If we don’t get new hairdressers, the hairdressing department will disappear.”
The industry is calling for urgent reform as high-street salons say they are struggling to stay afloat under heavy tax obligations.
Labor’s first budget in 14 years will be tabled by Chancellor Rachel Reeves on Wednesday 30 October. She warned it would involve “difficult decisions”.
Government sources told the BBC that the budget could include tax increases and spending cuts worth £40bn.
Sir Keir Starmer said in a speech on Monday that the government would take “tough decisions” and threatened to raise taxes “to stop austerity and rebuild public services”.
“Just as no one wants to cut public spending, no one wants to raise taxes,” he said.
“But we have to be realistic about where we are as a country.
“This is not the case in 1997, when the economy was doing well but public services were exhausted.
“And not in 2010, when public services were strong but public finances were weak. We have to deal with both sides of the coin.”
Meanwhile, a Department for Education spokesperson said the apprenticeship period was “high time” and skills training was “taken seriously”.
They said they would “unlock opportunities for our country’s young people to harness their talents and grow our economy.”
They added: “We will work with businesses, unions, mayors and training providers to identify and close skills gaps across our country.”
