The beauty industry has slammed a move by the new Prime Minister Andy Burnham to slash business rates for pubs, clubs and live music venues.
Thousands of hospitality businesses will receive a 20% cut to business rates from April next year under the plans, which are designed to drive growth on the UK’s high street.
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However, the British Beauty Council has slammed the government’s move for ignoring the beauty sector’s £28.3bn contribution to the UK economy and retail ecosystem.
The industry group, which represents thousands of beauty businesses across the UK, branded the move a “slap in the face”.
“Taking 20% off an already discounted bill for pubs [after a 15% cut in April this year] while ignoring salons and retailers is a slap in the face for high street businesses striving to maintain a stable presence in our communities,” said Millie Kendall OBE, CEO of the British Beauty Council.
"With 196,563 businesses across the personal care sector, hair and beauty salons and retailers outnumber pubs across small, medium, and large high streets, as well as all urban and suburban areas.
“Our sector is 86% female-led, with half the workforce between 18-35 years old.
“Not only that, 45% of its businesses sit in areas of highest deprivation – providing vital employment, apprenticeship pathways, and community wellbeing where it is needed most.
“Unlike pubs, which enjoy flexible licensing frameworks to pivot business models, scale standing capacity, or offer alfresco dining, a salon’s revenue is strictly bound to its physical station layout.
“Rising rateable values have already hit salon margins with unmatched severity, forcing commercial spaces to close and displacing taxable activity off the high street.”
Increasing economic headwinds have seen the beauty industry’s growth slow since a post-pandemic boom.
Employment in the beauty industry fell 2.8% last year, according to the British Beauty Council’s recent Value of Beauty report.
The sector’s overall contribution to UK GDP fell from £29.4bn to £28.3bn.
Kendall continued: “If the Government is serious about building an economy that works for every postcode, HM Treasury must stop picking winners and treat retail, hospitality, and leisure as the interdependent ecosystem it is.
“We implore the Chancellor to extend equivalent business rates relief across personal care at the upcoming Budget.”
Announcing the new measures, Burnham said the business rates reduction for pubs, clubs and music venues was “just the start as we work to bring back hope across the country”.
The government said that it also intends to reform the wider business rates system – a move welcomed by the British Beauty Council.
