For an industry synonymous with creativity, community, and connection, with a thriving social media presence, the vibrant culture of salons lies at a fragile crossroad. Is there a way to resolve the sustained decline that we’ve experienced for over a decade?

Especially as this trajectory is at odds with the wider beauty and personal care industry which has seen positive growth both prior to the pandemic, and in the years of recovery since.

As a result of the varying challenges facing salons, apprenticeships and in order to future proof the hairdressing community, in 2024 the British Beauty Council commissioned Thinks Insight & Strategy, a global insights consultancy, to develop by way of consultation with industry itself, a series of recommendations that could solve some of the integral & systemic challenges. These are:

1. First and foremost, reforming the VAT system would provide much-needed relief to salons. More widely, a re-evaluation by Government of existing business support is required to ensure employment is not dis-incentivised. Current legislative and financial incentive structures mean that self-employment is likely to continue to grow. At the same time, salons are still recognised as important places of learning and creativity. This may mean a proliferation of hybrid models, which employers need clear guidance on.
2. Deliver standardisation of the industry without losing sight of accessibility and inclusivity. Those in the industry value that it is accessible, meritocratic and offers varied career paths. However, they recognise the need for greater standardisation, such as through regulated qualifications, to protect consumers and to improve the industry’s reputation, ensuring that it is recognised as the skilled profession that it is.
3. Training and support that recognises the multi-faceted nature of hairdressing. Each day, hairdressers take on multiple roles: from stylists and businesspeople to therapists, influencers, and artists. Beyond technical education, there is demand for business, marketing, and communication training as standard, setting young people up for success and allowing professionals to continue to grow and feel empowered in their careers.
4. The industry should promote and celebrate visions of success that reflect the different ways that the sector operates today. Many hairdressers feel that the only way to truly progress in their careers is through self-employment or business ownership. However, there are also salon models that are successfully growing and retaining employees by rewarding performance. Both, if done legitimately, should be welcomed.

The Council also funded a report by Pragmatix Advisory into the cost implications and cumulative impact of the 2024 Budget last Autumn.

More widely, other organisations and campaign groups have also commissioned research and data to explore the state of play and possible solutions to the challenges that seem to be so unique to the hairdressing sector.

Each of the reports surmise that the challenges facing hairdressing are acute. Rising costs are suffocating businesses across the UK. Salon owners are struggling with the cumulative impact of increases to rates, rent, utility bills, wages, NICs, apprentices and product costs, leaving many operating on razor-thin margins. Ninety percent of salon owners surveyed as part of the Thinks Insights & Strategy recommendations identified overheads as their most significant challenge​.

Since the Council’s #CHOPTHEVAT campaign back in 2020, we have spotlighted how ill-suited the current VAT system is to labour-intensive industries like hairdressing. Unlike other businesses, salons cannot reclaim VAT on their primary expense—wages. This creates a significant financial disparity that, since 2009, has already cost the sector an estimated £2.4 billion in lost VAT receipts, according to a CBI Economics report commissioned by the British Hair Consortium​​.

The 2024 Budget measures announced by the Chancellor will further exacerbate this issue, with Pragmatix Advisory forecasting that the professional services sector is set to face an over £190 million annual increase in staff costs, equivalent to approximately 9,500 jobs. Furthermore, modelling published by the National Hair & Beauty Federation suggests the measures announced in the Autumn Budget will reduce already marginal profits to salons by 15%. This is simply not tenable.

The talent pipeline is also under severe strain. Apprenticeships, once the cornerstone of the industry, is seeing sharp decline in completion rates, as salons reduce training programs to cut costs and young people find the environment and wage structure challenging in today’s economic climate. Without a steady influx of skilled professionals, the industry risks stagnating and losing its renowned artistry and innovation.

This matters because the hairdressing industry is more than a collection of businesses—it is a vital part of the UK’s social and economic fabric. Salons contribute billions of pounds to the economy annually (professional services as a totality contributed 4.2bn in 2023), provide flexible employment opportunities, and serve as community hubs where confidence and connection are nurtured.

Moreover, hairdressing plays a crucial role in supporting women’s employment and entrepreneurship, with a majority of salon owners (86%) and employees (81%) being women. To allow this sector to falter would be to lose not only an economic asset but also a space of cultural significance and personal empowerment​.

The resilience of the hairdressing industry is undeniable. Stylists and salon owners are innovating every day—adopting hybrid models, leveraging digital platforms, and finding new ways to engage clients. However, they should not have to navigate these challenges without adequate support.

At the British Beauty Council, we see the immense potential of this industry and are committed to advocating for the reforms it desperately needs. VAT adjustments, investment in training, and professional standardisation are not merely desirable; they are essential for the survival and prosperity of hairdressing.

We will continue to engage with policymakers to recognise the value of hairdressing to the UK economy and society and provide the structural support required to ensure its sustainability. Hairdressing has always been about transformation, and now it is time to transform the industry itself—securing its place as a vital and thriving part of our collective future.

On March 17th 2025, hair salon owners and supporters of the hairdressing sector from across the country will be meeting at 12:45pm at Parliament Square Gardens to protest for tax reform. The ‘Save Our Salons’ protest will be calling on policy makers to modernise and reform the current tax system. We at the Council will see you there.