Salon owners and industry groups have raised concerns that hairdressers face an unfair tax burden compared to pubs, clubs, and music venues, which recently received targeted business rates relief. They argue the disparity disproportionately affects women, given the predominantly female workforce in the hair and beauty sector.

Since coming to power this summer, Prime Minister Andy Burnham’s administration has extended a 20 percent discount on business rates to hospitality venues, aimed at easing financial pressures. However, similar support has not been offered to hairdressers, barbers, spas, and beauty salons, prompting frustration among salon owners who say their sector has been overlooked.

Collette Osborne, owner of the Hairven salon in Nottingham, highlighted that over 80 percent of employees in the industry are female. She questioned why the Labour Party, which controls local government in many areas, appears to prioritize hospitality businesses while neglecting those largely run and staffed by women. “Would their lack of interest be different if it was run by men – and employed mainly men?” Osborne said, expressing concerns about potential gender bias in policy decisions.

Industry groups, including the British Hair Consortium, have mobilized to call for a reduction in the Value Added Tax (VAT) rate from 20 percent to 10 percent for the hair and beauty sector. They contend that the current tax framework, combined with upcoming increases in employers' National Insurance contributions set for 2025, is adding substantial costs, discouraging hiring and diminishing opportunities in the industry. According to the Consortium, the sector lost nearly 25 percent of its workforce last year, and apprenticeship numbers have dropped by 70 percent, trends attributed in part to the rising tax burden.

Under current tax rules, companies with annual turnover exceeding £90,000 become liable for VAT at the standard 20 percent rate, a threshold that many salons reportedly find challenging. The anticipated increase in National Insurance contributions next year is expected to further raise staffing costs.

A Treasury spokesperson acknowledged the significance of hair and beauty businesses in sustaining jobs and contributing to vibrant local economies. They emphasized ongoing government efforts, stating that reforms to business rates—including a £4.3 billion support package—are designed to limit bill increases across sectors. However, they did not indicate any immediate plans to extend equivalent tax relief to the hair and beauty industry.

The disparity in support highlights ongoing debates about how government tax policies impact different sectors and raises questions about whether considerations related to workforce demographics are influencing fiscal decisions.