The hair and beauty sector is showing resilience but there are calls for urgent Government support, NHBF survey finds.
The UK’s hair and beauty industry is showing signs of resilience in the face of economic challenges, according to the National Hair & Beauty Federation’s (NHBF) latest State of the Industry survey, released in April 2025.
The report, based on data from over 430 personal care businesses across the UK, highlights a sector that is adapting to survive amidst growing financial strain and recruitment difficulties – but one that urgently requires targeted Government support to secure its long-term future.
Despite a challenging climate, 40% of businesses are still turning a profit and 39% are breaking even.
However, the number of salons and barbershops reporting losses has increased to 21% – up from 17% in January 2025.
Business confidence has also taken a hit, with 30% of respondents expecting turnover to decline in the next three months.
In response to rising costs, a record 74% of businesses have increased their prices, while others are focusing on cost-cutting and improving competitiveness to maintain stability.
Recruitment, apprenticeships and rising employment costs remain key concerns
The increase in wage rates and changes to National Insurance thresholds are adding significant pressure, particularly around recruitment.
Just 8% of respondents plan to hire new staff and only 5% intend to take on apprentices – a concerning statistic for the future skills pipeline within the personal care sector.
While 68% of business owners remain confident about their long-term survival, this figure has dipped since the previous survey, reflecting ongoing uncertainty.
Caroline Larissey, chief executive of the NHBF, commented, “Despite considerable pressures, it’s clear that many hair and beauty businesses are showing real resilience. But they cannot do it alone.
“With the right support – from VAT reform to practical help with apprenticeships and energy bills – we believe this sector can not only recover but grow. The NHBF is committed to ensuring our members have the guidance, resources and representation they need to thrive.
“We urge Government to act decisively to unlock the full potential of this vibrant industry.”
NHBF outlines five key areas for Government intervention
To help businesses remain viable, protect employment and support future growth, the NHBF is calling on the Government to take action in the following areas:
- VAT reform, including the introduction of reduced or tiered rates
- Apprenticeship funding of at least £3,000 per new hire
- Continued business rates relief for small, high street-based businesses
- Greater energy cost support for small and micro businesses
- Stronger enforcement against tax-evading businesses that harm legitimate operators
How this data supports the #SupportOurSalons campaign
These findings from the NHBF’s April 2025 survey come as Professional Beauty and Hairdressers Journal continue their #SupportOurSalons campaign, urging Government to provide targeted relief for salons and spas struggling under the weight of rising costs.
The Autumn 2024 Budget saw a hike in employers’ National Insurance contributions and a reduction in the Employment Allowance threshold – measures that many PAYE-based salon businesses say are pushing them to breaking point.
Since the Budget announcements, we’ve heard from dozens of salon owners concerned about the future of their teams, training programmes and ability to invest in business growth.
From cutting back on apprenticeships to shelving expansion plans and even selling up altogether, their stories reflect the real pressure the industry is under.
By sharing this new NHBF data and your stories with MPs and the wider public, our goal is to drive awareness and campaign for change.
If you haven’t already, join the movement by contacting your MP and sharing your experience.
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