Menu
How does the budget affect the hair and beauty industry?
Last week Chancellor Rishi Sunak announced his 2021 budget; here journalist Charisse Kenion outlines what it means for hair and beauty businesses.
Maintain
With Rishi Sunak announcing an additional £56 billion worth of measures, the beauty industry can expect to see more business grants – including a new Restart Grant in April – aimed at helping businesses ‘get going again’. As non-essential retail businesses will open up first, they will be able to receive up to £6,000 per premises.
For the hospitality, leisure and personal care businesses, there will be grants of up to £18,000 as they will be reopening later in the year and could be impacted by new government restrictions once they do open.
Some good news comes with the knowledge that the Furlough scheme, which pays up to 80% of people’s wages, has been extended until September and that there will be two more grants available in April and May as part of the Self-Employed Income Support Scheme.
And there’s also help for the newly self-employed, which will come as welcome relief for the thousands of people who took the plunge into being their own boss before the pandemic hit. Because the 19/20 tax return deadline had passed this meant many newly self-employed people were unable to apply for the government’s Self-Employed Income Support Scheme but with the new budget, they too will be able to apply for the final two grants mentioned above.
Business rate holidays have been extended until June, and from there on they will still be discounted by two thirds – up to a value of £2 million for closed businesses, with a lower cap for those who have been able to stay open during this time. Something else for businesses to think about is that the government is doubling incentive payments to £3,000 for those who hire new apprentices of all ages.
Despite the government support, we know that it’s not going to be easy for everyone. Even Sunak admits that, “even with the new Restart Grants, some businesses will also need loans to see them through. As the Bounce Back Loans and Business Interruption Loans schemes come to an end, we’re introducing a new Recovery Loans Scheme to take their place,” says Sunak.
One part of the budget that the beauty industry is not happy about is that the personal care sector has not been included in the new 5% reduced VAT rate. Industry leaders from Millie Kendall MBE, chief executive of the British Beauty Council to Samantha Grocutt, president of the Hair & Beauty Charity, have both expressed disappointment at the sector’s lobbying not being accepted.
Survive
While there are clearly some misgivings about the government’s decision to not extend the 5% reduced VAT to the personal care industry, many are campaigning on a daily basis to change the system, and with the economy expected to return to pre-Covid-19 levels by the middle of 2022, it’s clear that things can only get better.
Build
Sunak commented on his first budget, last year and how important it had been for him at that time to do whatever it took to support the economy and the businesses and families that needed help. As he delivered the 2021 budget he said: ‘it will take a long time to recover from this extraordinary situation, but we will recover.”
For further information on the budget 2021 visit: https://www.gov.uk/government/news/budget-2021-what-you-need-to-know
To find out if your business is eligible for a Restart Grant contact your local authority. You can find them https://www.gov.uk/find-local-council
Need more advice? Check out blog: We’re In This Together and to find out what’s happening next and how to prepare for reopening, stay tuned!
New & Trending
Delivery
Collection
Please login to your account to check stock in your local store.
OFFER
NEW
Delivery
Collection
Please login to your account to check stock in your local store.
3 FOR £10
OFFER
NEW
Delivery
Collection
Please login to your account to check stock in your local store.
3 FOR £10
OFFER
NEW
Delivery
Collection
Please login to your account to check stock in your local store.
3 FOR £10
View Details
OFFER
NEW
Delivery
Collection
Please login to your account to check stock in your local store.
3 FOR £10
Delivery
Collection
Please login to your account to check stock in your local store.
OFFER
NEW
Delivery
Collection
Please login to your account to check stock in your local store.
3 FOR £10
Freelance Focus
Freelance Focus, is a one stop resource for anyone working as a freelancer or thinking of going freelance in the hair & beauty industry, which includes a FREE downloadable guide filled with advice, useful insights, experiences and tips (from experienced freelancers) to help you understand the steps needed to make the right choices for you.
Back to Posts
Tags
- 2024
- acne
- allergies
- apps
- autumn
- awards
- balayage
- blonde
- braids
- bridal
- brows
- business
- capital & me
- care
- career
- celebrities
- christmas
- chrome
- clean
- collection
- color wow
- colour
- colours
- conditioner
- covid-19
- crazy color
- curls
- facial
- fanola
- fashion
- festival
- finance
- floral
- freelance
- gel
- gellux
- get the look
- goldwell
- halloween
- indola
- interview
- k18
- lashbase
- lashes
- lob
- loreal
- loyalty
- make up
- manicure
- marketing
- men
- mens
- mental health
- microblading
- milk_shake
- nail art
- nailart
- nails
- new years
- nioxin
- nxt
- olaplex
- opi
- party
- pedicure
- ponytail
- pulp riot
- redken
- retail
- revlon
- salon revamp
- salon system
- schwarzkopf
- self-employed
- shampoo
- skincare
- smoothing
- social media
- split-ends
- spring
- step by step
- summer
- sustainability
- tanning
- the manicure company
- the met gala
- tigi
- tiktok
- toner
- toning
- top knot
- trends
- tutorial
- updo
- valentines
- veganuary
- wahl
- waxing
- wella
- wellbeing
- winter
Latest Posts
- How To Winterise your Client’s Hair Routine
- Keeping It Clean: Essential Barber Shop Sanitisation Tips
- Now Live: LashBase
- Trend Alert: Muted Shades With Goldwell
- The Best Christmas Gifting Products For Your Salon
- Jenna Ortega: Get The Look
- Spook-tacular Nail Designs for Halloween: Get Ready to Enchant Your Clients!
- Why We’re Falling for Pumpkin Spice Hair Colour
- London Fashion Week SS25 Show Report
- Nail the Magic: OPI X Wicked
Related Posts
The true cost of beauty - 80% of Brits admit to spending £1200 on beauty treatments per year
We did some digging to reveal the true cost of beauty, and what we found may shock you! A whopping 80% of Brits admit to spending £1200 a year.
The UK cities with the most top - rated hair & beauty professionals
We explore what drives consumers to leave positive reviews online for their hair and beauty professionals, and reveal the UK cities where salons and freelancers have received the most favourable reviews.
Staying Organised with Apps and Online Services in 2023
While starting your own business can feel like an endless list of tasks there is so much you can do via your phone and a variety of apps.
Harnessing the Power of Social Media in 2023
When it comes to being a hair or beauty pro – freelance or salon-based – social media offers your clients a window into your creations, how you work and how popular you are.
How to set up your at-home salon
There are various ways you can go freelance; while some hair and beauty pros prefer to rent a chair or space in an existing salon, others love the freedom and flexibility of creating their own at-home workspace.
Getting and Retaining Clients as a Freelancer in 2023
Starting your own business can definitely be daunting, but once you’ve got your clientele sorted, you’re halfway there! Here we break down some useful tips to getting and retaining your clients.
Pricing Your Services as a Freelancer in 2023
Deciding on your costs can be one of those super difficult decisions that you’d rather not deal with. However, it is an important step, so make sure you do your research. Here are some tips to help make the process that little bit less painful.
Managing Your Finances as a Freelancer in 2023
More and more people in the hair and beauty industry are going freelance and one of the keys to sustainable success is knowing what’s happening with and how to manage your finances. Here we break down our top tips to get your started.