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BHC Report: Govt Must Halve VAT To Save Salons

BHC Report: Govt Must Halve VAT To Save Salons

BHC Report: Govt Must Halve VAT To Save Salons

Employment and apprenticeships will be decimated unless there’s action, warns explosive industry report

by AMANDA | INFORM

No new apprenticeships by 2027 and a 93 per cent fall in employment by 2030 – those are the stark findings from an incendiary British Hair Consortium (BHC) report on the future of UK salons unless the government halves VAT.

The report – by independent consultancy CBI Economics and based on responses from more than 2,000 salon owners and professionals – highlights how an unbalanced tax system is decimating the industry, largely because the sector is far more labour intensive than most other high street businesses, with limited chances to reclaim VAT costs. This is leaving VAT-registered businesses at a disadvantage, particularly with the rising levels of ‘disguised employment’. The latter described the practice of hiring contractors to avoid VAT and NI payments.

This unlevel playing field sees employers often contributing more than double the tax (12 per cent more) than the disguised model. The industry shift to self-employment has coincided with a decline in overall sectoral employment, which may have cost the Treasury £2.4bn in VAT receipts alone since 2009. The continuing drop in employment would create a sector “largely devoid of the employment rights that come with being an employee”.

The report also noted that cutting VAT on salon labour costs would be hugely cost-positive, potentially reversing the decline in VAT registrations.

“A ‘one size fits all’ tax system doesn’t work and has created an unlevel playing field. This report shows how cutting VAT to 10 per cent won’t cost the government a penny. It would save salons across the country and ensure the future of our industry, which sits at the heart of the high street” – Toby Dicker, BFC co-founder

Rising costs that are due to hit in full force in April following Chancellor Rachel Reeves’ Autumn Budget, have exacerbated the crunch for many salon employers. With the Spring Forecast due in five weeks, the BHC – which represents 50,000 UK hairdressing professionals – says the government must act urgently on VAT.

To show your support, the BHC is urging salon owners to visit bhc.co.uk to download the report and personalise the templated letter, which can be emailed to local MPs.

The BHC is a working group representing all areas of the UK personal care sector, including the Salon Employers Association, Salon Owners United, the Hair & Barber Council, the Freelance Hairdressers Association, the Men’s Hairdressing Federation and the Fellowship for British Hairdressing.

Reaction From Salon Employers

“The changes from the last Budget have made it very hard for salons to continue to offer the benefits of employment and we will certainly not be able to take on as many apprentices going forward. This will kill the future of our industry.” – Laura Geary, director at Headmasters, one of the UK’s biggest salon groups and one of the largest providers of apprenticeships

“Last year’s change in NI contributions has forced us to close our salon in Ormskirk in West Lancashire after 57 years of trading. Nearly all our competitors in Ormskirk are self-employed and we cannot continue to be competitive.

“We’re also a specialist provider of hairdressing apprenticeships – the largest in Liverpool. Last year we had over 300 applications but were only able to find employment for 60 apprentices because fewer salons can afford to take them on. Apprenticeships are the main route for sustainable careers in hairdressing, but the model is under threat if there aren’t enough salons able to directly employ hairdressers.” – Charlie Collinge, director at Collinge & Co, Liverpool

“One of the biggest challenges I’ve faced over the years has been VAT. A growing number of salons now operate with chair renters who don’t have to pay VAT, which allows them to keep their prices low and creates an uneven playing field.

“I also worry about the future for the next generation of stylists. Who will train them? Recently I had to make the difficult decision to let my two newest apprentices go because I simply can’t afford them. My training provider has no salons on their books looking for apprentices this year, as chair rental salons don’t typically train apprentices. If salons like mine continue to be squeezed, they’ll become less and less viable, making it even harder for employers like me to secure a stable future.” – Denise Thomas, owner of Denise Thomas Hair Salons, in Liverpool

Apprenticeship Reforms Aim To Cut Red Tape And Time Reforms Aim To Cut Red Tape And Time

Apprenticeship Reforms Aim To Cut Red Tape And Time Reforms Aim To Cut Red Tape And Time

Apprenticeship Reforms Aim To Cut Red Tape And Time

Changes to English and maths qualifications for over 19s and shorter apprenticeship duration included

by AMANDA | INFORM

The Department for Education is removing English and maths functional skills exit requirements for adult apprentices, alongside a reduction in the minimum apprenticeship duration from 12 to eight months and a streamlining of End Point Assessments. 

Businesses will now be able to decide whether adult learners over 19 need to complete Level 2 English and maths qualifications to pass their apprenticeship. The change comes in with immediate effect. 

The reduction in the minimum amount of time it takes to complete an apprenticeship – cut from 12 to eight months – will take effect from August 2025, with an eye on speeding up the development of future workers.  

 Secretary of State for Education, Bridget Phillipson, said: “Businesses have been calling out for change to the apprenticeship system and these reforms show that we are listening. Our new offer of shorter apprenticeships and less red tape strikes the right balance between speed and quality, helping achieve our number one mission to grow the economy.”  

The reforms also include changes to End Point Assessments (EPAs). From April 2025, the assessment process will become more streamlined. This includes more proportionate assessment methods that remove duplication, potential for on-programme assessment where appropriate and greater flexibility for training providers to deliver certain assessment elements. 

Caroline Larissey, chief executive of the National Hair and Beauty Federation, commented that the change to English and maths requirements could appeal to those who “excel in practical skills but struggle with formal qualifications”. “This could lead to a more diverse and skilled workforce, better equipped to meet the evolving needs of our clients,” she said. 

Cathy Weston, director of quality and standards at the NHBF, added that the change was “particularly promising” when considering completion rates and could “significantly improve success rates” while maintaining high standards. 

 However, Larissey said the increase in apprentice minimum wages and the need for “more robust employer incentives” still posed challenges: “The NHBF will be pressing the government for answers on how they plan to support employers in maintaining sustainable apprenticeship programmes, particularly in a sector where margins are already extremely tight.” 

 

Seven Key Takeaways From The 2025 Phorest Salon Owners Summit

Seven Key Takeaways From The 2025 Phorest Salon Owners Summit

Seven Key Takeaways From The 2025 Phorest Salon Owners Summit

The 2025 Phorest Salon Owners Summit in Dublin brought together salon professionals from around the world for a refreshing event designed to help them elevate their businesses and prepare for the year ahead. Creative HEAD was there – these are the insights you need to know!

by AMANDA | INFORM

1. Customer Intimacy Is Key To Brand Success

Ken Hughes, a consumer and cyber behaviouralist, emphasised the importance of human connection, exploring how salons can foster intimacy by going beyond expectations. His example? Taylor Swift and her success at building customer relationships! His advice including using their spaces as community hubs and recognising the employee experience as equally valuable to the customer experience.

2. Empower Staff For A Thriving Culture

Hairstylist Daniel Mason-Jones focused on creating a healthy workplace culture by addressing mental health and setting boundaries. Provide clear communication and training, and use tools like Phorest Tips to empower staff with transparent compensation structures.

 

Diversity and inclusion panel

Ronan Harrington

3. Break Barriers In Beauty

A live panel tackled diversity and inclusion in beauty, featuring trailblazers such as Carra’s Winnie Awa, Texture vs Race’s Keya Neal, Ruka Hair’s Tendai Moyo and beauty writer DijaAyodele. The discussion explored expanding circles of trust, product innovation (including Tendai’s biodegradable synthetic hair) and the need for truly diverse industry panels and leadership. There were lessons from the US beauty market, which was seen as “eight to 10 years ahead of the UK in inclusivity terms.

4. Prioritise Resilience And Wellbeing

Resilience teacher Ronan Harrington offered tools to navigate challenges with intention and grace. Begin each day with purpose and focus on meaningful connections. He advised shifting from a “victim mindset” to a “creator mindset”, while also taking care of personal wellness to avoid burnout. Spa innovator Peigin Crowley also highlighted the importance of mental health, encouraging salon owners to recognise and manage burnout effectively.

5. Leverage AI To Transform Salon Operations

AI and its potential to revolutionise salons were a recurring theme. Phorest’s John Doran discussed how AI can boost average bills through upselling and cross-selling, provide actionable insights from data, help staff achieve goals with forecasting tools, enhance marketing with AI-generated content and improve client communication through an AI receptionist.

6. Master The Client Lifecycle

Marketing guru Kati Whitledge shared strategies for winning and retaining clients, stressingthe importance of continuous exposure, creating a desire for your services through visibility. You’ve got to be proactive in pursuing clients and prioritise making a lasting impression at every client touchpoint.

 

Kati Whitledge

Peigin Crowley

7. Unlock Hidden Gems In Phorest Tools

Phorest’s own Patrick Monaghan and Rich Cullen unveiled five “hidden gems” within its software that every salon should be using – advanced online booking settings, reporting tools, digital loyalty programmes, marketing magic features and Phorest’s Benchmark Report, which tracks industry trends and performance metrics.

What Did We Learn At Wella RED Business Network Live?

What Did We Learn At Wella RED Business Network Live?

What Did We Learn At Wella RED Business Network Live?

From the genesis of the Bank of Dave to the power of ‘Careless Whisper’, discover the insight we brought back from the iconic business event

by AMANDA | INFORM

With more than 250 from across the UK and Ireland based at Manchester’s Kimpton Clocktower Hotel, the 2025 Wella RED Business Network Live was engineered to tackle the challenges impacting salon owners right now. Both inspirational speakers and real business leaders took to the stage to share practical insights, personal experiences and debate potential solutions for headaches that will arise from the Autumn Budget and impending changes to employment rights. Here are they big lessons we learned:

Stay On Top Of Your Records – Or Else
With big changes incoming to employment rights – from unfair dismissal to harassment, family leave to flexible working – Sally Hulston and Ciara Fulton from law firm Lewis Silkin insisted record keeping will be key to staying on the right side of the law.

Show The Brilliance Of Being Employed
With the Budget bringing rising costs, VAT headaches and now employment rights changes favouring workers, being an employer has arguably never looked so unattractive. But Hellen Ward – joined on a panel by fellow salon bosses Anya Dellicompagni, Natasha Grossman, Alan Simpson and Patrick Gildea – encouraged everyone to communicate to teams just why being employed is so attractive, to stem the flow of talent leaving for self-employment. “We need to make sure that ‘employment’ doesn’t become a dirty word,” she insisted.

Focus On Strengths
Leadership expert Mark Edwards warned of the impact of low engagement on business (estimates put it at costing £257bn a year!). “Gen Z have zero tolerance for not being inspired at work,” he warned, with ‘quiet quitting’ on the rise. “You need to focus on what is right rather than fixating on what is wrong.”

Do ‘Tiny Noticeable Things’

You need to be up for making changes, warned leading motivational speaker and author, Adrian Webster, and doing ‘tiny noticeable things’ are explosive. “They show you care,” he said, “and they can often cost nothing.”

Fun Fact – Hard Graft Is Still Key

Formula One team owner and chairman of McLaren Applied, Nick Fry, was frank. “The difference between those who are successful and those who aren’t, is hard work,” he said. “The successful people actually get on and do it.”

Someone who just got on and did it? Dave Fishwick, best known as the brains behind the Bank of Dave in Burnley (he’s also the biggest supplier of minibuses in Britain). His start came from making a £29 profit on the sale of a used car, while working market stall shifts and spinning records as a DJ at night… often working seven days a week. “If you’re not making mistakes, then you’re not trying hard enough,” he said. “Take the risk and 99 per cent of them will pay off.”    

Adrian Webster

Flip The Conversation
Communication expert Lee Warren shared tips on how to be more persuasive, all through the power of language. “If you’re talking about a weakness and strength, put the weakness first in the conversation, then the strength last,” he advised. “The response will be very different.”

Don’t Get Comfortable
Starting with a cement mixer and a car paint sprayer to make her first big batch of popcorn, Cassandra Stavrou MBE – founder of healthy snack company, Proper Snacks – plays ‘Careless Whisper’ at 1pm each day through the office to signal its lunchtime… and desk eating is banned! But don’t mistake that for any kind of weakness – her drive has seen Proper Snacks hit £100m+ in sales, and its growing. “An impatient business is a progressive business,” she argued. “Comfort zones become graveyards for ideas. Embrace ambiguity and embrace contradiction.

Cassandra Stavrou MBE

Remi Cachet Unveil Their New 2025 Super Stylists

Remi Cachet Unveil Their New 2025 Super Stylists

Remi Cachet Unveil Their New 2025 Super Stylists

Winners revealed for the latest cohort on the brand’s programme

by AMANDA | INDUSTRY NEWS

Rochelle Anthony, Alex Ferris and Christopher Laird are among the names revealed in the line-up of the Remi Cachet 2025 Super Stylist programme. The group, built from loyal brand advocates, have been identified by Remi Cachet as extensionists excelling in their work and will form a community of hair professionals who have the chance to work closely with the brand. Find the full list of Remi Cachet 2025 Super Stylists here.

The group, recognised for their expertise and influence, will have access to an exclusive community of like-minded, talented hair pros with whom they can network, collaborate and support. They will also experience, and have a direct influence on, new product development and innovation from Remi Cachet, taking part in testing and feedback sessions and involved in official launches. They’ll also benefit from training, increased industry visibility and getting the inside-track on the latest hair extension advancements.

“Giving recognition to exceptional extensionists who hero expertise and ethical practice is important in a crowded industry, where premium-quality and high standards are crucial,” said the brand founder, Victoria Lynch. “I am excited to motivate and inspire our new generation of Super Stylists, providing them with the tools they need to create magic!”

The 2025 Remi Cachet Super Stylist programme has been revamped following previous years. Any radius considerations between stylists have been removed to open new opportunities to more hair pros who deserve the title. Any spend cap on entry requirements have also been ditched, to make the programme more accessible to smaller independent salons, mobile stylists and those ‘up and comers’ within the extensions world.

It’s been a busy time for Remi Cachet – they’ve just revealed industry veteran Lisa Jackson as its new chief executive officer and has also taken minority investment from entrepreneur investment backers, Growth Partner.

Could You Make It On To The 2025 Schwarzkopf Professional Young Artistic Team?

Could You Make It On To The 2025 Schwarzkopf Professional Young Artistic Team?

Could You Make It On To The 2025 Schwarzkopf Professional Young Artistic Team?

Hunt is on for UK and Irish stylists aged under 26

by AMANDA | INDUSTRY NEWS

2024 Schwarzkopf Professional Young Artistic Team

Are you a young talent looking to be hot housed? You might just be in luck! Schwarzkopf Professional is searching for stars of tomorrow to join its 2025 Young Artistic Team.

The programme offers education and talent development, mentoring and shaping the careers of rising stars within the UK and Ireland. The opportunity is open to stylists aged under 26 to train, grow and shine under the guidance of some of its big-name ambassadors.

Those selected for the 2025 Young Artistic Team will receive:

A minimum of 10 days of top-quality training with industry experts
A dedicated photographic session to showcase their creative vision

Hands-on experience to shape their careers and open doors to future opportunities

This Is How You Enter:

Create a mood board! This must reflect who you are as a creative, showing your inspirations and the kind of work you aspire to create.

Film a short video! This is an introduction to yourself! Share your story, your passions and your vision as the person behind the scissors – show judges what makes you unique.

 Submit your mood board photo and video by midnight on Sunday 9 February via this link.