The NHBF has released a statement welcoming the support for the hair & beauty sector in Chancellor Rishi Sunak’s Budget as a success for its lobbying efforts over the past year.
Personal Care is one of the only sectors due to re-open in Step 2 (currently expected from 12th April) where businesses will be eligible to receive a one-off cash grant of up to £18,000. Details on how to apply will be announced in the next week.
Salon owners will also be supported by:
- Furlough (Coronavirus Job Support Scheme) being extended to September 2021 across the UK.
- A new UK-wide Recovery Loan Scheme to make available loans between £25,001 and £10 million to help businesses of all sizes through the next stage of recovery.
- Small and medium-sized employers in the UK will continue to be able to reclaim up to two weeks of eligible Statutory Sick Pay (SSP) costs per employee from the Government.
- In England, business rates relief of 100% until the end of June and then a discount of two-thirds until the end of the year.
- Corporation Tax will remain at 19% until 2023, staying at this level for those with profits of £50,000 or less. It will then be tapered, with only those generating £250,000 or more in profit being charged 25%.
For self-employed hair & beauty professionals:
- The UK-wide Self Employment Income Support scheme is being extended to September 2021, and everyone who filed a tax return in 2019-20 is now able to claim for the first time.
- Those whose turnover has fallen by over 30% can claim 80% back and those who have lost less than 30% of turnover can claim 30%.
Local authorities in England will also be given an additional £425m to support businesses who have fallen through the gaps in support and may not be eligible for restart grants.
Richard Lambert, Chief Executive, National Hair & Beauty Federation says,
“We welcome this budget. We’ve worked hard to inform and educate the government about our sector, particularly through our recent report, An Industry at The Sharp End. Their improved understanding is reflected in the whole package – above all, in securing the higher grants for Personal Care.
“We were worried that the most vulnerable in our sector would find it hard to survive to re-open, but both the Restart Grant and further funding for the self-employed have thrown a lifeline to struggling businesses and professionals.
“We will continue to press the case for a short-term reduction in VAT to help the hardest-hit hair & beauty businesses to recover.”
BABTAC, British Beauty Council, NHBF and UK Spa Association have been working as part of a COVID Coalition to make a case to Government for the need for targeted support for our sector. This has included formulating a robust and fully costed proposal for an immediate recovery fund for the personal care sector and a cut in VAT to five per cent once reopened in order to counter the effects of working at reduced capacity due to social distancing requirements. The Coalition continues to work together for the good of the sector to campaign for improvements in recognition and support for our sector now and going forward.
Full details of the budget can be found on the Government website.