Business rates relief could help salons’ finances

The scraping of National Insurance contributions for young people, relief for business rates and increased investment into the apprenticeship scheme announced in the Chancellor’s Autumn Statement could have positive impact on salons finances.

The changes, announced today and set to come into force in the new financial year in April, include a cap on business rates increase as well as a £1,000 discount for some businesses and doubling the Small Business Rate Relief for 12 months, the scraping of National Insurance contributions for employees aged under 21, and an extra £40million investment in apprenticeships.

Missed opportunity

While the changes have been welcomed by small business representatives, many feel it was a missed opportunity to provide further support for small business growth.

John Cridland, director-general of the Confederation of British Industry, said, “The pressure on the high street has been recognised; the 2% cap of business rates and discount for very small business are positive. Abolishing a jobs tax on employing young people under 21 will make a real difference. But it was a missed opportunity not to support our hard-pressed energy intensive businesses, which are also struggling with rising costs.”

Hilary hall, chief executive of the National Hairdressers’ Federation, expressed disappointment that there had not been a full review into the business rates system, saying that reform is “long overdue.

“The current system is outdated, and disadvantages business, such as hairdressing, which have no option but to have a physical presence on the high street. We’d like a model that takes better account of competition from online retailers, one that is more fairly balances across town centre, out-of-town and online retail,” she said.

Youth employment

According to the Chancellor’s statement, the £40m investment in apprenticeships will boost the number of people taking such schemes by 20,000. However, chief executive of City and Guilds Group Chris Jones expressed concerned about the plans, saying he felt that the Statement puts the apprenticeship scheme at risk.

“It’s the assumption that employers have the time – and indeed the will – to cope with the additional bureaucracy these reforms will entail. Employers should certainly be in the driving seat for apprenticeship, but without enough involvement from educators and awarding organisations, the road ahead is bumby.”