The National Hair & Beauty Federation (NHBF) has welcomed increased business rates relief announced in the UK Government’s Budget, but has warned that further wage increases could put pressure on hair and beauty employers.
From April 2027, the threshold for 100% Small Business Rates Relief for qualifying properties in England will rise from £12,000 to £18,000 rateable value, with tapered relief extending to £21,000. The Government estimates that an additional 1,700 hairdressers and beauty salons will pay no business rates as a result, while qualifying businesses will also benefit from a two-year freeze in business rates bills.
However, the NHBF said that because these measures come alongside a 3.9% increase in National Living Wage and National Minimum Wage rates, effective from 1 April 2027, margins for beauty businesses will remain tight.
“Raising the business rates relief threshold is a welcome step for high street hair and beauty businesses. For those eligible, it will ease a significant fixed cost and create more room to invest in their teams, training and premises,” said NHBF President Fiona Johnston.
“However, the benefit must be considered alongside rising employment costs. The real test is whether this Budget gives businesses the financial confidence to retain staff, recruit and offer apprenticeships. Support with one cost must translate into greater stability across the business.”
The NHBF also welcomed the extension of parental pay to eligible self-employed fathers, partners and adopters in Great Britain from April 2029, recognising the importance of financial support for new parents across the sector, particular within barbering.
Changes to Self Assessment will require taxpayers who already make payments on account to make smaller, more regular in-year contributions from April 2029. The NHBF said implementation must be straightforward and reflect the fluctuating incomes of small businesses and self-employed professionals.
On enterprise, the Trading Allowance will increase from £1,000 to £3,000 from 6 April 2027. A Young Entrepreneurs Allowance pilot in England will also provide successful applicants with support towards living costs during their first year in business.
The Budget’s £100 million investment in local apprenticeship services over 2027–28 and 2028–29 will expand brokerage pilots to 14 Mayoral Strategic Authorities in England, helping young people access apprenticeships and supporting employers, particularly SMEs, to create opportunities.