British Hair Consortium Publishes Survey Results Following October Budget Announcement

The survey included responses from 1,686 industry employers representing over 21,000 workers 

by MADDI | INFORM

Following the October 2024 Budget announcement, the British Hair Consortium (BHC) has released survey results, summarising the initial reaction from the industry and highlighting significant concerns for the UK hairdressing sector.  

The survey showed that 42 per cent of respondents say they are considering closing their businesses within the next year. 98 per cent of salon owners are exploring self-employment models for their staff, with many feeling that switching away from the direct employment (PAYE) system may be necessary for survival. This shift away from traditional employment could have implications for the industry and workers alike, as noted by Hellen Ward from the BHC: “Many workers relinquish their employment rights in exchange for promises of more money in their pocket. Furthermore, many of these unscrupulous business owners use this model as a vehicle to avoid VAT by splitting income at worker level.” 

Apprenticeships, which play a crucial role in developing the next generation of hairdressing talent, could also be at risk. 95 per cent of salon owners who currently employ apprentices say they will reduce their intake, end apprenticeships or decide not to take on any more trainees. BHC’s Collette Osborne commented on the complex legal challenges salon owners face in determining legitimate employment models, noting that “the truth is that our industry has no clear understanding of guidelines on what a legitimate and legal business model is. Salon owners who fall foul of the law only find this out when they are hit with fines that often are so high, the business has to close anyway and, in many cases, end in bankruptcy.” 

Image by Christopher Bill

BHC representatives warn that such a shift could impact not only the livelihood of salon workers but also have broader economic consequences. A loss of PAYE contributions, reductions in VAT and a decline in apprentice numbers threaten to destabilise the sector and diminish government revenue from the hairdressing industry. Office for National Statistics data supports these concerns, showing a decline of 45,000 employees, or 37 per cent of the workforce, in the hairdressing sector since 2018. 

The survey revealed that 94 per cent of respondents are either extremely concerned for the future or believe a generation of apprentices will be lost, and 98 per cent of respondents do not believe the hair sector is valued by the government.  

Amid this uncertainty, Toby Dicker from the BHC emphasises the importance of unity in the industry to navigate the challenges ahead: “There’s never been a greater need for the industry to join together to ensure that everyone is trading under the correct terms. If you want to be properly represented then join one of the six business organisations that are most representative of our industry.” 

The BHC continues to advocate for sector reforms, underscoring the urgency for clear guidelines and support to sustain the future of British hairdressing.