Budget brings boost for salons and spas

The removal of business regulations, an extension of rates relief and more funding for apprenticeships were among the measures announced in today's budget that are likely to provide a much-needed boost to small businesses such as salons and spas. While large corporations will benefit considerably from measures such as a 2% corporation tax cut, there are a number of moves that will help small businesses and sole traders in the salon and spa market. In his address, chancellor George Osborne announced that the small business rate relief holiday is being extended by one year to October 2012, meaning independent businesses such as salons will benefit from discounted rates for longer. 'It's all part of our ambition to make the UK the best place in Europe to start, finance and grow a business in Europe,' he added. Additionally a move to cut £350m worth of regulations will save businesses time and money spent on cutting through red tape to comply. Osborne also announced a series of changes to boost start-up business. A moratorium on all new regulations for businesses of less than 10 people and all domestic start-ups for three years from April 1 2011 means that many salons will be not have to comply with new legislation, saving time and money to fuel growth. In a move to boost skills and give small businesses affordable labour, a £75m programme will be introduced to fund 40,000 advanced level and 10,000 higher apprenticeships. Part-time or self-employed therapists are likely to be happy with the announcement that the amount employees can earn before paying taxwill be increased by £630 to £8,015 from April 2012. As previously announced, the personal allowance will rise by £1,000 to £7,475 from April 1 this year. Additionally the Government has outlined plans to simplify the payment of National Insurance and income tax with a promise that this will not involve increased but rather a simplification of the system of payment to remove some of the red tape. Mobile therapists could benefit from a cut the price of fuel by 1p per litre from 6pm tonight and the announcement that a Fair Fuel Stabiliser will be implemented to help keep costs down in future. Back