Autumn Budget 2024

Autumn Budget: What Does This Mean For Hairdressers

Rachel Reeves’ Autumn Budget brings significant changes impacting hairdressers and personal services. Key measures include a minimum wage increase to £11 per hour for workers over 21, raising payroll costs for salons. Employers’ National Insurance contributions will also rise from 13.8% to 15%, with the earnings threshold for contributions lowered from £9,100 to £5,000.

However, an increase in Employment Allowance from £5,000 to £10,500 offers relief, exempting around 865,000 employers from NI payments in the coming year. Business rates will see adjustments as well, with the small business multiplier staying at 49.9p, while the national rate rises to 54.6p.

The budget presents a mixed outlook for hair salons, encouraging operational adjustments to cope with rising expenses while maintaining some tax stability. The sector continues to push for additional support, particularly for apprenticeship funding and VAT reform, to sustain growth and prevent a skills gap. The government’s initiatives signal both challenges and avenues for adaptation as salons navigate increased costs alongside efforts to retain staff and attract clients.

National Hairdressers Foundation Responds To Autumn Budget

Chief Executive Caroline Larissey welcomed the increase in Employment Allowance, which will ease costs for some businesses, despite the hike in employers’ National Insurance (NI) contributions. However, she expressed disappointment over the lack of interim support for youth training, emphasising that small businesses may struggle to afford apprentices, underscoring the need for targeted support through the Growth & Skills levy.

The NHBF plans to work closely with the government on business rates reform while continuing to advocate for VAT adjustments and further support for youth employment. 

Beauty Industry Will Be Hit Hard By Budget Measures

For small business owners, particularly in beauty and hair, these changes announced in Rachael Reeves’ Budget bring mixed outcomes. The increased Employment Allowance is designed to mitigate rising labour costs, but the lower NI threshold and a 16% rise in youth wage rates pose challenges for those hiring apprentices.

While tax simplification and digitalisation efforts may ease administrative burdens, the 40% business rates discount is seen as only a partial solution to rising costs, with some in the industry calling for deeper reforms, particularly on VAT, to ensure longer-term sustainability.

Community Vibes 💇

Celebrating Four Years of Style: A Local Hair Salon's Journey to Success

Full Extent Hair, a salon in Sowerby, celebrates four years of success, blending creativity with community spirit. Owner Laura Bottomley has fostered a welcoming environment, offering innovative hair services and supporting local causes. The anniversary event features raffles and discounts, honouring loyal clients and marking future growth.

Guide To Community-Focused Hair Salons

Community-focused establishments are making waves by offering more than just stylish cuts and colours. These salons are creating spaces that foster connection and creativity, catering to diverse communities with unique needs. From the luxurious privacy of Josh Wood's atelier to the eco-conscious vibe of Whip in Brighton, each salon offers something special.

For those seeking a comprehensive beauty experience, Hershesons in London provides a one-stop shop for all things aesthetic, while Charlotte Mensah's Hair Lounge offers expertise in Afro haircare alongside meaningful conversations over tea and cake. Meanwhile, Sta Studios empowers freelance stylists, and George Northwood's salon attracts the fashion-forward crowd with its effortlessly cool styles.

Beyond the traditional salon services, innovative treatments like scalp facials and ayurvedic massages are gaining popularity, offering rejuvenation and relaxation. Products from renowned stylists, such as Ouai Anti-Frizz Creme and Charlotte Mensah's Manketti Oil Finishing Mist, ensure that salon-quality results can be achieved at home. These community-focused salons and treatments not only enhance your appearance but also nurture your sense of belonging and well-being.

Fresh Finds 💡

Josh Wood Colour Launches Game-Changing Oil

Josh Wood Colour introduces Miracle Hair Oil, a versatile and affordable treatment for vibrant, healthy hair. Priced at £15, it offers five uses, including frizz control and overnight nourishment. Vegan and cruelty-free, it protects against damage, especially for greying hair, ensuring salon-quality results at home.

Industry Spotlight 🔍

Q&A: Moncho Moreno's Haircare Brand Expands to the UK with Harrods Partnership

Moncho Moreno and Berta Martin Sainz launched their haircare brand in 2020, focusing on hair repair. Their first product, the Magic Brush, combines boar and synthetic bristles for scalp massage and shine. The brand's bestseller, Bond J'Aime Bond, is a leave-in conditioner offering protection and nourishment. Their products, including shampoos and masks, are now available in the UK through Harrods.