Hair and Beauty Sector: Government Policy

Sarah Bool Excerpts

Wednesday 23rd April 2025 Westminster Hall

[Sarah Bool (South Northamptonshire) (Con)]

I thank my hon. Friend the Member for Hornchurch and Upminster (Julia Lopez) for securing this most important debate. When thinking about the debate, I looked up some quotes on hair. My favourite was, “Invest in your hair: it is the crown you never take off.” That is a very true sentiment, although I apologise to the men among us who are perhaps lacking in the hirsute department. Naming no names—they are kings in their own right.

Hair is such an integral part of our being and our confidence, and we can appreciate how traumatic it is when people lose their hair while undergoing cancer treatment or suffering from alopecia. We often expect to walk on to our high streets and find a hair and beauty salon that can help to tame our locks or restore our nails, but we cannot take the sector for granted. According to the British Beauty Council and Oxford Economics, the sector contributed £8.541 billion to the UK economy in 2023, supporting the direct employment of more than 224,000 people.

I have many excellent hair and beauty salons in South Northamptonshire, but it really pained me when Defern Beauty in Brackley and The Beauty Works in Towcester met me and explained how desperate the position is for the industry. It was heartbreaking to see them explain how their life-long work is being eroded by this Chancellor. After NICs increases and business rate relief changes, they desperately need help.

One of their asks is for a review of the VAT position, which would help not only to save businesses and raise revenues for the Exchequer, but also to save apprenticeships. The British Hair Consortium’s February 2025 report explains that as VAT is applied evenly across goods and services, it has a disproportionate burden on labour-intensive industries such as hairdressing and beauty, where 60% of the costs are wages. When they are unable to reclaim the VAT on their primary cost, which is people, there is a distorted market with competition between VAT-registered and non-registered businesses, which incentivises VAT avoidance tactics such as bunching, disaggregation and disguised employment. We should not be surprised by the rise in cash-only salons, and should think carefully about what that means in practice. The consortium is also calling for a mandatory register of all hairdressing professionals. Without a register, VAT avoidance and disguised employment will continue unchecked, costing the Treasury billions while putting responsible businesses at a disadvantage.

My businesses pride themselves on taking apprentices and bringing the next generation along, but my fear is that, as the British Hair Consortium believes, apprenticeship starts are set to reach zero by 2027, which contravenes the Government’s objective of reducing inactivity among 18 to 21-year-olds. These businesses simply cannot afford to take on the next generation, which will stifle the industry in the long term. I implore the Government to engage with the industry and take immediate action. Hair is a beautiful form of self-expression. Where will we be left without it?