Planning ahead for Brexit has been a struggle for the beauty industry with so much uncertainty over when it’s happening, whether the UK will secure a deal, or even whether it will happen at all. And now as the government debates options so close to the UK’s new leaving date, the uncertainty is intensifying.
Hilary Hall, chief executive of the National Hairdressers Federation said,
“when talking to our members, the biggest concern for most is whether Brexit could cause the UK economy to dip or even go into recession, leading to clients cutting back on their hair and beauty spending in salons. While there is no doubt that a recession would be very tough, coming on top of already difficult trading conditions, in the last recession in beauty remained fairly strong as a sector. Clients often chose to cut back on large, expensive items such as cars before they cut back on having their hair or nails done. But when times are tough they may leave it longer between salon visits or have less expensive services or treatments than they might otherwise have done.”
Depending on the terms of any trade deals between the EU or the rest of the world, the cost of imported professional hair or beauty products may go up, although the government has promised to remove import tariffs to protect customers from price rises. New restrictions on customs arrangements may mean that it will take longer for products to arrive.
If the UK leaves the EU without a deal, salon owners who employ EU workers need to make sure any EU citizens who were resident in the UK before Brexit apply for the EU Settlement Scheme by 31 December 2020. Settled or pre-settled status allows them to continue working and studying in the UK. There will also be a new process for EU citizens arriving in the UK before 31 December 2020.
From 1st January 2021, there will be a new skills-based immigration system. Meanwhile if you import from or export to the EU, you need to register for a UK Economic Operator Registration and Identification (EORI) number.
Hilary adds, “although what will happen with Brexit is far from certain, now is a time to review costs, negotiate deals with suppliers and allow longer lead times for orders.
