What the chancellor’s summer economic statement means for beauty businesses

Chancellor Rishi Sunak delivered his summer economic update yesterday (July 8), which outlined the Government’s ambitions to recovery from the economic harm caused by coronavirus and its aims to support and maintain businesses to get back to work. But how does the statement benefit beauty businesses? 

Despite good news in terms of the Government helping beauty businesses to take on new trainees and apprenticeships and paying salon and spa owners a bonus for bringing back furloughed employees, many felt underwhelmed by the statement.

One particular concern was that the beauty sector was not included alongside the hospitality and tourism industries to benefit from the VAT cut from the current rate of 20% to 5% for the next six months (from July 8, 2020, to January 12, 2021). Sunak said this move is a £4 billion catalyst which will benefit more than 150,000 businesses that have been hit hard by Covid-19. 

Key highlights from the summer economic update for beauty businesses to be aware of include: 




Industry reactions

Hillary Hall, chief executive of the National Hair and Beauty Federation (NHBF), said: “The Chancellor’s economic update failed to recognise the significant support needed for hairdressers and barbers, as one of the last sectors to open, and the desperate requirements of beauty businesses who are still not yet open. We had also called for a VAT reduction for our industry.”

She added: “This comes as it was revealed earlier this week that local authorities have underspent their allocated Retail, Hospitality and Leisure Grant funding by £1.7bn, a vital fund for businesses in need across the country. We are calling on the Government to act now and redirect this surplus to the retail and hospitality industries, including the hair and beauty sector.”

What do you make of the summer economic statement? Comment below. 

In other news, the timetable for reopening of nail salons in England is expected this week