The Autumn Budget has landed – and while Chancellor Rachel Reeves promised stability and “fair, necessary action,” the UK’s hair, beauty and barbering sector was left wondering whether anyone in Westminster has actually seen a salon’s balance sheet lately.
With income tax and NI thresholds frozen, a higher-than-expected inflation forecast, salary-sacrificed pension schemes being taxed, minimum wage rising again in April 2026, and dividend tax up by 2%, the overall message was loud and clear: costs are going up. Again.
And the industry has a lot to say about it.
BABTAC: “This adds pressure on already tight margins.”
Lesley Blair MBE, CEO and Chair of BABTAC & CIBTAC – and former Treasury advisor – didn’t mince her words.
“For small businesses continuing to navigate the current financial climate, the decision to freeze income-tax thresholds until the end of 2030/31 offers some certainty for planning and forecasting,” she explained. “However, the freeze on National Insurance thresholds will effectively increase employer contributions as wages rise with inflation, adding further pressure on already tight margins.”
She added that taxing salary-sacrificed pension contributions removes “a valuable incentive” for staff while the OBR’s revised inflation forecast will squeeze both business overheads and client disposable income.
And as for the 2026 minimum wage increase to £12.71?
Lesley noted: “Although positive for workers, it will significantly raise wage bills in a labour-intensive sector. Coupled with a 2% rise in dividend tax, the cumulative impact could challenge the commercial viability of many small salons.”
NHBF: “Salons are already at breaking point.”
Caroline Larissey, chief executive of the NHBF, said the Budget simply didn’t recognise the realities of small, people-focused businesses.
“Today’s Budget delivers little for the small, people-focused businesses at the heart of every high street,” Caroline said. “Hair and beauty is one of the most accessible and empowering routes into work for women, young entrepreneurs and neurodiverse individuals – yet this Budget was far from the ‘fair and necessary’ action our sector urgently needed.”
She warned that members are “already at breaking point,” adding:
“The Chancellor cannot keep loading costs onto small businesses without offering the support needed to keep them trading… If the Government truly wants to grow the economy, end low pay and keep high streets open, today’s wage announcement must be matched with serious support on National Insurance, business rates, skills and enforcement.”
HARE: “Once again, our sector has been overlooked.”
James Talbot, co-founder of HARE, a values-led Oxfordshire barbering and hairdressing business, didn’t hide his frustration.
“As an entrepreneur… I’m deeply frustrated by the lack of meaningful support for our industry in today’s UK budget,” he said. “Once again, one of the country’s most socially important and economically vulnerable sectors has been overlooked and ignored.”
James explained that the planned minimum wage rise – while well-intentioned – “will hit small legal businesses hard at a time when margins are already razor-thin.”
And business rates? Still unclear.
“The VAT threshold remains at a totally unfair and unviable £90k,” he added. “Many independent, entrepreneurial and legal businesses like ours will struggle to absorb these costs… threatening the survival of the salons and barbershops that serve at the heart of communities.”
His message for Government was stark:
“If Britain wants skilled, qualified barbers and hairdressers in the future, it needs to back the enterprising and community-led businesses that train them today.”
Industry Voices: “We need to focus on what we can control.”
The wider industry – from salon owners to educators – echoed similar concerns, emphasising resilience, planning and realism.
Benjamin Shipman (The Hair Movement, Sidcup)
Benjamin said this “wasn’t the Budget any of us were hoping for,” noting that it offered “nothing to incentivise or help us.” But he urged the industry to stay proactive.
“It forces us all to futureproof our business ourselves,” he explained. “We need to focus on what we can control… communicating the value of our services, refining our prices and becoming more business savvy.”
Billy Ryan (Tribe Salons, Clapham Common)
Billy noted that while the Budget held few surprises, the impact is still significant.
“The next year will need calm heads and steady leadership,” he said. “Strong financial planning, reliable systems and steadily increasing the value of what we deliver will matter more than ever.”
Sean Hanna (Sean Hanna Salons & Consultancy)
Sean was clear: complaining won’t cut it.
“Hope and complaining are not strategies,” he said. “Business leaders have a choice; either stand still and endure whatever happens or… make decisions that will ensure their business succeeds.”
British Hair Consortium: “We must be heard – now more than ever.”
In response to mounting concerns, the British Hair Consortium has launched a major nationwide survey, urging every corner of the sector – salon owners, freelancers, barbers, educators, mobile pros – to contribute evidence that will be used to lobby Government.
“Without a strong, collective evidence base, upcoming government decisions risk worsening the pressures already facing the sector,” the Consortium wrote.
The message? If the industry wants change, it needs to speak with one voice.
The Bigger Picture: Why This Industry Matters
If anyone still doubts the sector’s economic importance, consider this:
- Beauty generated £30.4bn in GDP in 2024 – growing four times faster than the UK economy.
- The sector directly employs nearly half a million people, with a footprint close to 700,000.
- It contributed £8.6bn in tax in 2024, set to rise to £9.4bn in 2025.
This isn’t a niche industry. It’s a powerhouse – and one that deserves to be taken seriously.
Where Do We Go From Here?
While the Budget delivered few wins for hair, beauty and barbering, the sector is nothing if not resilient. From Lesley Blair’s financial realism to James Talbot’s call for fairness, and from the NHBF’s advocacy to grassroots voices urging practical action – the message is clear:
The industry will keep fighting. But Government needs to listen.
For now, the most powerful tool the sector has is its collective voice.
And yes – that means filling out the survey.