There’s been a lot of worry for businesses since the autumn budget was announced last week, however Meg Piper is reminding us that it’s not all bad. Breaking it down and being real but with a glass is half full approach is just what we needed to hear. Cheers Meg!
Meg Piper
“The autumn budget was announced in the House of Commons on Wednesday, and I think it’s safe to say it was a mixed bag for our industry. Key factors include a raise in the National Minimum Wage, a National Insurance freeze for employees, and the simplification of tax and business rates. It’s clear the government has focused on getting more money into people’s pockets, which, in turn, is a positive for our industry.
An increase in the National Minimum Wage to £12.21 (for those over 21 years old), coupled with a rise in employer contributions, up by 1.2% to 15%, can feel like a kick in the teeth to many employers, even with the increase in the Employers’ Allowance, which has doubled to £10,500. I can see why salon owners operating with an employed model are concerned about their future, but it’s also worth considering that this means more money in our clients’ pockets as well.
Tax simplification is a great step for our industry. With more people becoming self-employed, a supplier system with increased digitisation is a win for everyone.
Another win for the industry is the continued support for small businesses through Business Rates. This includes the continuation of the small business rates multiplier at 49.9p for properties with rateable values under £51,000.
But what does it all really mean? I think what we’re seeing in our industry reflects the broader economy. Unfortunately, the squeeze on ‘middle businesses’ is very real. Microbusinesses are seeing some relief, but once a salon grows, it feels like an uphill battle with taxes, wages, and National Insurance contributions. Money just isn’t going as far these days, and we’re all feeling it.
So, as an industry, what can we do? We really need to address the unequal tax burden in our sector, which can hinder growth for salons. A call for the beauty industry to be treated as a separate category could help the government address these inequalities.
In conclusion, while the autumn budget brings some welcome changes for small businesses and employees, it also highlights the unique challenges facing the hair industry. The increased National Minimum Wage and employer contributions may put additional pressure on salon owners, particularly those who are scaling up. However, there are opportunities as well, such as tax simplification and continued support for smaller businesses through Business Rates relief.
As an industry, we must continue to advocate for policies that address our specific needs and ensure that growth is achievable at all levels. By working toward a fairer tax structure and gaining recognition as a distinct sector, we can help secure a more sustainable and prosperous future for beauty businesses across the UK.”
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