Hair and Beauty Sector: Government Policy

Debate between Julia Lopez and Julian Lewis

Wednesday 23rd April 2025 Westminster Hall

[Julia Lopez]

My right hon. Friend is absolutely right: this is about a series of things hitting these businesses. It is about new legislation, new taxes and the withdrawal of reliefs that had been supporting businesses. I am glad my right hon. Friend intervened, because I was in Hornchurch yesterday speaking to staff at Wyndham Hair. Johnpaul, who runs that business, is one of my right hon. Friend’s constituents, and he told me how supportive my right hon. Friend has been of his local high street, so I appreciate the support he is giving me in the debate.

As my right hon. Friend said, this is about a whole range of people sectors. It is not just about salons being hit with these staggering tax bills; it is also about the early years sector. That sector supports many other businesses that require good workers. When I talk to nurseries in my constituency, some of the bills they talk about are just unbelievable. In fact, they are so unbelievable that when I tell people about them, they do not believe it—they think the nurseries must have got their sums wrong, but that is absolutely not true.

One after-school and holiday club provider has seen her annual NICs bill go from £10,851 to £26,040. That is a small business, and it is being absolutely hammered. One nursery provider told me that the combined impact of NICs and the minimum wage is adding £30,000 to her payroll costs every month. Those are unbelievable numbers, which risk driving many nurseries to closure. That will dismantle the support network that allows many other women to go into the workplace.

The minimum wage is right in principle, but when we force a small salon with razor-thin margins to meet that extra cost on top of everything else, it becomes untenable. When we add to that the looming Employment Rights Bill, many salons are telling staff to go self-employed just to survive. That is not giving people more protections but ripping up the ones they already have.

That brings me to apprentices. Salons are letting them go very fast. For decades, this industry has opened doors for young people to learn skills and earn a living, and that ladder is being kicked away. At Coal House Cuts, the owners once proudly trained apprentices; now they cannot afford to. Wyndham Hair used to employ four apprentices; now they have one. The Vanilla Room is getting daily calls from laid-off apprentices, but it too has had to cut learner hours. Its owner, Kerry, told me:

“For the first time in 30 years, we just can’t afford to run apprenticeships. Our costs are up £28,000 on apprenticeships a year. How much does the government think salons make?”

After I put in for this debate, more stories poured in from across the country. This crisis goes beyond hair and beauty, because I am hearing the same from construction firms—another traditional route for working-class youth. Two vital pathways into work for working-class girls and boys are collapsing. Is this the future that Labour promised—a generation of young people priced out of skilled trades because Westminster could not design a Budget with small businesses in mind? That is surely the very opposite of what this Government say they want, and it is utterly incompatible with their drive to get people off welfare. Because beauty salons are facing so many different costs, they are also cutting back on training, in a sector where customers demand that they are up on the latest technologies.

So what will happen? First, there will be job losses and price hikes. One of the challenges for many salons is that their customers face the same economic headwinds, so they are spending less and visiting less often. Then there is the ultimate risk of closures. Every time a salon closes, it leaves more than just an empty unit; it leaves a void in the community—a place of connection, conversation and confidence gone. Speaking to Wyndham Hair yesterday, I heard not only about the services it offers but the support it gave its long-standing clients through covid. Those are the kinds of businesses that these people run. Utopia has clients aged 10 to 97; the 97-year-old goes to the beauty salon because it is her place of sanctuary. When legitimate businesses vanish, they are replaced by shady operations that are often fronts for illegal or exploitative practices. The rest of the high street struggles, apprenticeship routes collapse and tax receipts fall—they will not rise.

[Sir Julian Lewis (New Forest East) (Con)]

I know it is not the main thrust of my hon. Friend’s argument, but does she share my concern at the detailed exposés at the end of March in the Evening Standard and The Sunday Times about the huge proliferation of barber shops, which could not possibly all be conducting legitimate trade? For example, the Evening Standard talked about 17 barbers in and around a two-mile stretch of Streatham High Road, and about 25 on a similarly sized section of Kingsland Road between Stoke Newington and Haggerston. That is clearly criminal activity on a major scale.

[Julia Lopez]

I thank my right hon. Friend for that important intervention. As I was preparing for the debate, I read about some of the police operations in Manchester, where they have been cracking down on this kind of activity. The frequency with which they found that these were fronts for illegal businesses—often with links to international crime gangs—is deeply worrying. That is one reason why I want to raise the profile of this issue. We cannot lose legitimate businesses from our high streets, because what fills the void is something that none of us wants in our communities.

What can be done? I know how this works: the Minister sits in the Department for Business and Trade, not His Majesty’s Treasury, so he cannot give any substantive answers on the fundamental mistakes being made on tax policy. However, like any Business Minister worth his salt, he will probably share my concerns and wonder how best to get the Treasury to change course. He might even find this debate quite helpful to his own lobbying, just as the Under-Secretary of State for Education, the hon. Member for Portsmouth South (Stephen Morgan), and his officials did when I gave him evidence about the crisis now engulfing the early years.

Here are some practical asks that my salons would like the Minister to make of the Chancellor: VAT reform, with a reduced rate for labour-intensive services; the restoration of business rates relief and the overhaul of the outdated business rates system, particularly for high street premises; the revival of apprenticeship incentives; and revisiting the measures in the October Budget. Look, the Government should use global market turmoil as an excuse to mask Labour’s mistakes if that is what it takes, but let us get a U-turn on these economy-shrinking tax takes. They are not working. Confidence and employment are down. Growth projections have been halved. The tax take is going to shrink, and that will translate into a smaller pot for public services. Members do not need to take my word for it; the International Monetary Fund said so just yesterday, confirming its view that the UK’s growth prospects have been cut because of domestic factors.

To conclude, this debate must serve as a reminder that Government do not create growth—businesses and people do. Those businesses are now often paying increased rent, utility bills, professional fees, VAT and covid debt interest and, since April, giant hikes in business rates and the cost of employing people. It is just too much. People work to incentives, and right now the incentive to start a business such as a hair and beauty salon, grow it, take on staff with full employment rights and train apprentices is simply not there.

The Government say they care about growth, communities and employee rights, but their actions—I hope by accident rather than design—are crippling the very people who grow things, give heart to communities and employ people. I say to the Minister: use this debate and take these real stories, these stark warnings and the sector’s clear-eyed solutions straight to the Treasury—before it is too late.

Telegraph Media Group: Proposed Sale to RedBird IMI

Debate between Julia Lopez and Julian Lewis

Tuesday 30th January 2024 Commons Chamber

[Julia Lopez]

I thank the hon. Gentleman for raising an issue of principle, which I perfectly understand, as something that I speak about in relation to the BBC, and how it must have editorial independence from the Government. As a principle, I would be concerned about Government ownership of any media institution, but as he will be aware, I can speak only of principles.

[Sir Julian Lewis (New Forest East) (Con)]

When the wonderful Taylor Swift discovered that her back catalogue had been bought by a purchaser of whom she disapproved, she began to render it worthless by re-recording all her previous hits. Is that an example that journalists at The Spectator and The Telegraph might do well to follow?

[Julia Lopez]

I thank my right hon. Friend for his mischievous suggestion. I could not possibly comment on it, but I am sure that it has been heard.

Data Protection and Digital Information (No. 2) Bill

Debate between Julia Lopez and Julian Lewis

2nd reading
Monday 17th April 2023 Commons Chamber

[Julia Lopez]

I thank the hon. Lady for her helpful intervention. She is right: as I said earlier, trust in the system is fundamental to whether citizens have the confidence to share their data and whether we can therefore make use of that data. She made a good point about educating people, and I hope that this debate will mark the start of an important public conversation about how people use data. One of the challenges we face is a complex framework which means that people do not even know how to talk about data, and I think that some of the simplifications we wish to introduce will help us to understand one of the fundamental principles to which we want our new regime to adhere.

[Sir Julian Lewis (New Forest East) (Con)]

My hon. Friend gave a long list of people who found the rules we had inherited from outside the UK challenging. She might add to that list Members of Parliament themselves. I am sure I am not alone in having been exasperated by being complained about to the Information Commissioner, in this case by a constituent who had written to me complaining about a local parish council. When I shared his letter with the parish council so that it could show how bogus his long-running complaint had been, he proceeded to file a complaint with the Information Commissioner’s Office because I had shared his phone number—which he had not marked as private—with the parish council, with which he had been in correspondence for several years. The Information Commissioner’s Office took that seriously. This sort of nonsense shows how over-restrictive regulations can be abused by people who are out to stir up trouble unjustifiably.

[Julia Lopez]

Let me gently say that if my right hon. Friend’s constituent was going to pick on one Member of Parliament with whom to raise this point, the Member of Parliament who does not, I understand, use emails would be one of the worst candidates. However, I entirely understand Members’ frustration about the current rules. We are looking into what we can do in relation to democratic engagement, because, as my right hon. Friend says, this is one of the areas in which there is not enough clarity about what can and cannot be done.

We want to reduce burdens on businesses, and above all for the small businesses that account for more than 99% of UK firms. I am pleased that the Under-Secretary of State for Business and Trade, my hon. Friend the Member for Thirsk and Malton (Kevin Hollinrake), is present to back up those proposals. Businesses that do not have the time, the money or the staff to spend precious hours doing unnecessary form-filling are currently being forced to follow some of the same rules as a billion-dollar technology company. We are therefore cutting the amount of pointless paperwork, ensuring that organisations only have to comply with rules on record-keeping and risk assessment when their processing activities are high-risk. We are getting rid of excessively demanding requirements to appoint data protection officers, giving small businesses much more flexibility when it comes to how they manage data protection risks without procuring external resources.

Those changes will not just make the process simpler, clearer and easier for businesses, they will make it cheaper too. We are expecting micro and small businesses to save nearly £90 million in compliance costs every year: that is £90 million more for higher investment, faster growth and better jobs. According to figures published in 2021, data-driven trade already generates 85% of our services exports. Our new international transfers regime clarifies how we can build data bridges to support the close, free and safe exchange of data with other trusted allies.

Security of Ministers’ Offices and Communications

Debate between Julia Lopez and Julian Lewis

Monday 28th June 2021 Commons Chamber

[Julia Lopez]

I quite agree with my hon. Friend. In the decisions we take throughout this pandemic to tighten the system to ensure that there are no concerns, such as those expressed by hon. Members, it is important that we do not throw the baby out with the bathwater. Ministers should have the space to make important national decisions.

[Dr Julian Lewis (New Forest East) (Con) [V]]

Does the Minister know whether there are rules common to all Departments on where security cameras can be sited and where they must not be sited?

[Julia Lopez]

My understanding is that the general policy is that cameras are not sited within Ministers’ offices. I think this situation was an outlier in that regard, and we will have a better understanding of why it occurred once the Department’s investigation is complete.