Hair and Beauty Sector: Government Policy

Esther McVey Excerpts

Wednesday 23rd April 2025 Westminster Hall

[Several hon. Members rose—]

[Esther McVey (in the Chair)]

Order. I remind Members to bob if they wish to speak in this debate; it seems that quite a few Members want to. We will come to the Front Benchers at 5.10 pm. Although I will not set a hard deadline, speeches should be about three minutes.

--- Later in debate ---

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Ms McVey. I commend the hon. Member for Hornchurch and Upminster (Julia Lopez) for securing this debate. If you looked at me, Ms McVey, you would say that a beauty person could be working all day on that guy without making much difference. There is nothing on the top of my head, so when it comes to going to the barber’s it does not take me too long. I say that in jest: I am speaking in this debate on behalf of the constituents who have contacted me.

As the hon. Member for Hornchurch and Upminster and others mentioned, we are inundated by messages from local businesses and the consumers that they provide services to. According to the National Hair and Beauty Federation, there were more than 61,000 hair and beauty businesses operating in the United Kingdom in 2023. The hair and beauty industry is largely represented by small businesses. Those small businesses have mostly female owners, operators and workers, but not all. Three quarters of businesses employ fewer than five people, while 95% employ fewer than 10. Of people working in the beauty and hairdressing industry, 60.5% are self-employed—it is a specific group of people. There is also a downward trend: the industry has declined by 7%. Apprentices have also declined, as the hon. Member for Hornchurch and Upminster referred to, and some businesses are not taking apprentices on. Those are the issues.

The personal care and beauty industry as a whole grew its contribution to the UK economy by 11% in 2023, so there has been an upward trend in the businesses and what they do. Beauty and hairdressing is worth £5.8 billion, and it makes up a considerable chunk of the sector’s overall contribution to the economy. People tell me that it should be noticed that, for the large majority of hair and beauty businesses, turnover is less than £100,000. In its September 2024 industry survey, the NHBF found that 46% of salons and barbers surveyed made a profit, 41% made none—they broke even—and the rest just weren’t doing.

Those are not healthy statistics. The hon. Member for Hornchurch and Upminster was absolutely spot on when she outlined that business owners are facing a perfect storm of rising costs, including the withdrawal of business rates relief, the increase to employer national insurance contributions and higher minimum wages. Although people are happy to spend their hard-earned money on self-care, the industry struggles with profitability and needs more support. I look forward to what the Minister will say, because it is important we get this right.

The rise in the national minimum wage, the rise in national insurance contributions and increases in the goods supply price are leaving the industry with profit margins of a mere 2% to 3%. That is unsustainable. We need to correct it and offer support to small businesses and microbusinesses. I look to the Minister to see how we can help keep our beauty and hair businesses thriving, keep people in employment and keep people feeling good about themselves. That can be done only with greater support than is available right now. My wife says that when she goes to the hairdressers, she comes out and feels like a million dollars. I would say that she always looks like a million dollars, but that is just me.

[Esther McVey (in the Chair)]

You sweet-talking devil.