As the CEO of salon software provider SalonIQ, Sam Kendall talks about the disappointing outcomes of the Budget and believes that without intervention, there’s a very real chance that we won’t just lose individual salons, but that the structure of the industry will be fundamentally changed with fewer employers, fewer apprenticeships, and fewer opportunities for the next generation:
“The hair and beauty industry has been under immense and growing pressure, with the Autumn Budget doing little to support salon owners as those challenges accumulate.
Increases of almost 4% to both National Minimum Wage and National Living Wage will no doubt add to concerns around National Insurance Contributions, rising energy costs and business rates highlighted in the National Hair and Beauty Federation (NHBF) State of the Sector Survey 2026.
The survey also highlighted that, while many businesses described trade as steady, too many reported quieter conditions and profitability remaining weak, with a meaningful number making a loss. The Chancellor had an opportunity to invest in the industry, but there was little to celebrate – meaning concerns over the future of the sector remain.
Business Rates Relief
A positive piece of news was the acknowledgement of salons and other independent businesses which traditionally made up the British High Street. These companies will benefit from business tax relief rates rising from £12,000 to £18,000, and a freeze in real terms so that no salon will face over inflation rates for the next two years.
But will this go far enough? We’re seeing an increasingly concerning picture across the industry, and more hair and beauty salons are struggling to remain financially viable, ultimately leading to them shutting their doors for good.
The NHBF found only 65 per cent of respondents expected their business to survive the next six months without difficulty, and 72.6 per cent were expecting to increase their prices within the next three months to cope.
And this isn’t just affecting newly established businesses. We’re seeing long-standing salons, including well-known and respected names that have operated successfully for decades, reaching a point where they simply cannot continue.
Over the last two years alone minimum hourly wages have risen by 26 per cent. This is a considerable increase which has put huge pressure on our industry. Workers of course deserve to be paid a decent wage, but if the Government does not commit to helping employers, salons simply won’t be able to afford to take on new staff and will face even more financial hardship.
Rising employee and operational costs are all putting enormous pressure on businesses that already operate on relatively tight margins. Yet these operational costs were barely mentioned within the Budget, aside from an acknowledgement of the impact of astronomical energy prices.
This struggle isn’t a reflection on the salons themselves: our industry is full of hardworking, savvy people who are doing everything they can to keep their businesses afloat. But the industry can only take so much, and we simply cannot absorb another round of rising costs.
VAT Reform – a missed opportunity for the Government
The Salon Employers Association is running a campaign to reduce VAT on hair and beauty services from 20 per cent to 10 per cent, and this is something we desperately want the Government to get behind. In fact, this is one of the most important changes politicians could make to protect the future of our industry, but this has been completed ignored in the Autumn Budget.
Salons invest heavily in the development of the workforce. Not only do salon owners employ people and invest in training, but their businesses also contribute to local economies and play an important role on our high streets. Yet the current tax structure places a disproportionate burden on those businesses which employ and develop teams.
A reduction in VAT would provide much-needed breathing space, helping salons protect jobs, reinvest in their businesses and remain commercially viable. Without meaningful reform, there’s a real worry we will continue to see established salons disappear from our high streets.
Apprenticeships – we’re putting the future of our industry at risk
The financial pressures we’re facing as an industry are also having a concerning impact on apprenticeships. The hair and beauty sector has always relied on apprenticeships to develop the next generation of talented stylists, therapists and salon professionals, opening up important pathways for those who are keen to learn and develop.
But the current reality is that many salons can no longer afford to take apprentices on, and this is hugely damaging and disappointing. In fact, according to the NHBF, just 20 out of more than 400 salons were planning to recruit an apprentice within the next three months when surveyed earlier this year.
Every apprentice represents an investment in the future and an opportunity to strengthen our workforce. They of course require training, mentoring, supervision and financial support before they become fully qualified and commercially productive, but every minute of training is worth it.
In the short term, apprentices also play an incredibly valuable role in supporting experienced stylists and therapists, helping busy salons to operate effectively while learning their trade.
But if salons can no longer afford to take on trainees, we risk creating a significant skills shortage that won’t be easy to rebuild. And without a pipeline of future talent, the industry can’t survive.
A Disappointing Autumn Budget
The Government needs to recognise that the hair and beauty industry is more than a collection of small businesses. It is a major employer, a training ground for young people, and an important part of communities across the UK.
In line with this, the Government needs to do everything it can to protect the industry, and this means meaningful action on VAT, greater support for employers, and a sustainable approach to maintaining apprenticeships. To see that this hasn’t been delivered in the Autumn Budget is a real disappointment.
Without intervention, there’s a very real chance that we won’t just lose individual salons, but that the structure of our industry will be fundamentally changed with fewer employers, fewer apprenticeships, and fewer opportunities for the next generation.
We cannot continue to increase the cost of employing people and then be surprised when businesses stop employing them because it’s no longer affordable.
The future of the industry relies on this support, and we need the Government to listen to our concerns.”