Salons, barbershops and beauty businesses were excluded from temporary tax relief announced for other consumer-facing sectors.
Published:The National Hair & Beauty Federation (NHBF) is disappointed with the Government’s latest VAT measures, as Ministers continue to overlook hair, beauty and barbering businesses that have been campaigning for sector-specific reform for years.
Under the new plans, VAT will be temporarily reduced from 20% to 5% on selected family-focused activities, including children’s meals in restaurants, cinema and theatre tickets, and attractions such as zoos, museums and theme parks. While the move has been positioned as a way to boost affordability and footfall, the NHBF says it highlights the Government’s continued failure to support labour-intensive high street businesses already under severe financial pressure.
The federation argues that the decision demonstrates ministers recognise VAT reform can stimulate spending and support local economies, yet continue to overlook hair, beauty and barbering businesses that have been campaigning for sector-specific reform for years.
According to the NHBF, salons and barbershops remain among the biggest contributors to UK high streets, providing employment, apprenticeship opportunities and vital community services. However, many businesses are now struggling with rising wage bills, increased employer National Insurance contributions, energy costs, business rates and VAT pressures, all while attempting to keep services affordable for clients.
The organisation is calling for a fairer tax structure for the sector, including a reduced VAT rate or targeted reforms that better reflect the realities of running small, service-led businesses.
Recent NHBF research underlines the growing concern across the industry. In the federation’s Autumn 2025 State of the Industry survey, reducing VAT was identified as the single most important Government action businesses wanted to see over the following six months. Its February 2026 State of the Sector survey also revealed mounting pressure from rising operational costs and shrinking margins.
Sam Silver, Head of Policy and Public Affairs at the NHBF, said: “This announcement proves the Government knows VAT reform can be used to support businesses and ease pressure on consumers. The question now is why hair, beauty and barbering businesses are still being left out?
“Our sector is not asking for special treatment. We are asking for a fair tax system that reflects the reality of running a labour-intensive, high-street business. Salons and barbershops are being hit by rising wages, employer National Insurance, energy prices, business rates and the burden of VAT, all while trying to keep prices affordable for clients.”
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The NHBF also highlighted the local economic impact of the sector in Chancellor Rachel Reeves’ own constituency area. Across Leeds, the federation says the hair and beauty sector includes more than 600 businesses, supports almost 2,000 jobs and generates over £64 million in turnover.
The federation warned that without meaningful intervention, more salons and barbers may be forced into “survival decisions”, potentially affecting employment, training opportunities and the long-term health of UK high streets.
The NHBF is now urging the Government to explain why temporary VAT support has been extended to some customer-facing industries while hair, beauty and barbering businesses continue to face what it describes as “year-round structural pressures”.
For more information, please visit www.nhbf.co.uk.
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