The UK Government has unveiled a new strategy Backing Your Business: Our Plan for Small and Medium Sized Businesses outlining its long-term commitment to support small and medium sized businesses (SMEs).
With hair & beauty comprising thousands of salons, barbershops, clinics and self-employed professionals, many measures in this plan will directly affect our sector.
High Street Revival and Cost Relief
The NHBF has campaigned for a reformed business rates system, and we cautiously welcome the announcement that Government plans to permanently lower business rates for retail, hospitality, and leisure premises with ratable values under £500,000 starting in April 2026.
This change, alongside extended relief for 2025/26 and a freeze on the Small Business Multiplier, is a step towards providing financial relief to many hair and beauty businesses.
However, this is just a first step in the right direction, the NHBF is working with the Government to secure significant levels of reform.
Tackling the Issues of Late Payments
One of the major announcements in the Government’s plan is new legislation to tackle late payments.
This is a long-standing and serious issue in the hair and beauty sector. Many NHBF Members, particularly Solo Members, Assured Trade Members including educators, and brand ambassadors, report delays of 60 days or more when working with larger companies.
These late payments can cause major cashflow problems and undermine trust. The proposed reforms will introduce stricter payment terms, mandatory interest on overdue invoices, and the power to fine large firms that consistently pay late.
NHBF strongly supports this change by the Government, which has the potential to deliver fairer, faster payments across the supply chain and empower small business owners to focus on their work, not chasing invoices.
Tackling Crime and Licensing Red Tape
The plan also responds to growing concerns over safety on the high street, promising 13,000 additional community police officers and specific action against shoplifting and theft.
We know that many Members are concerned about the impact on their businesses if an area is perceived to be high crime, so we welcome this investment.
Support for Skills and Digital Growth
The Government is investing in leadership training, digital adoption, and AI tools for small business owners.
This includes specialist funding through the Made Smarter Adoption programme and expanded access to apprenticeships. These initiatives could help salons upskill staff, streamline bookings and marketing, and attract new clients.
The NHBF will work closely with the Department of Business and Trade to understand what this means for our Members and the wider hair & beauty sector.
Employment and Environmental Challenges
Finally, NHBF is closely monitoring proposals under the Employment Rights Bill, which is mentioned throughout the Business Plan, which could increase costs for small employers. There are also new expectations around energy use and sustainability. While support is offered, compliance may be complex and costly for some.
Caroline Larissey, NHBF chief executive, says, “We welcome this plan as a starting point. NHBF will be engaging directly with Government to ensure our Members, the hair & beauty sector’s voice is heard by championing policies that support, not strain, this vital part of the economy. We will continue keep members informed and provide resources to help navigate these changes.
