VAT cut needed to save salons
BUSINESSES CALL FOR MORE SUPPORT
HAIR and beauty business owners are backing calls for a reduction in VAT rates as many in the industry feel they have been forgotten about.
Salon bosses in Nottinghamshire want to see rates reduced to 5 percent which would be in line with the hospitality industry.
Sarah Clay, who owns the Lash Lounge Hair and Beauty Boutique in Beeston, said a lower VAT rate would “make a huge difference”.
She is currently going through training to become an NHS vaccinator as she has no idea when her business will be able to reopen.
She said: “I can’t think about it because it just makes me cry, it has made me so low.
“You just have to think that it’s a new day tomorrow but it is stressing me out.
“We’re in lockdown three now and we are a safe industry so it is very frustrating. It feels like the beauty industry has been forgotten about.
“They did Eat Out To Help Out for hospitality, why couldn’t they have done something for us? If you come into a salon, we’re in full PPE.”
Sarah said the industry needs more government support in order to get more people through the doors when they can reopen.
She said: “When we reopened last time, we were busy for a week and then people started cancelling on us.
“People have learned to live without getting their lashes and nails done, plus they are too scared.”
Sarah, who set the business up in September 2019, said she put £18,000 of redundancy money into it and has only made £4,000 so far.
Simon Tuckwell, who owns Tuckwell & Co salon in Nottingham, is also supporting the campaign.
He said: “2020 was extremely challenging and we are not out of the woods yet.
“We celebrated our first birthday during the summer lockdown, so as a new business owner, it has been incredibly daunting and the uncertainty has been overwhelming. The support of our team, clients and community has been so helpful to get us through these tough times. “
He said he feels the sector has been “overlooked” by the Government during the pandemic.
He added: “By the end of March 2021, we will have been closed for 260 days, yet we have not received any additional financial support, such as those gifted to the arts, the sports sector, leisure or hospitality.
“Financial help to salons and professionals during this difficult time will be the only way to ensure hairdressing can return to where it was at the beginning of 2020.”
He added that he is supporting the Save Our Salons campaign as thousands of businesses have already closed as a result of the pandemic.
He said: “Now, the majority of hair and beauty professionals are struggling to recoup their losses from lockdowns, implementing social distancing measures and the costs of increased PPE.
“Financial help to salons and professionals during this difficult time will be the only way to ensure that hairdressing can return to where it was at the beginning of 2020.”
A spokesperson for HM Treasury, responding to the petition, said: “The Government has announced a significant support package to help businesses affected by Covid-19. While there are no plans to extend the scope of the reduced rate, we keep all taxes under review.
“To support the cash flow of over 150,000 businesses and to protect 2.4 million jobs, the Government has applied a temporary reduced rate of VAT (5 percent) to goods and services supplied by the tourism and hospitality sectors.
“There are currently no plans to extend the scope to include other sectors.
“The Government has also announced a targeted package of measures and an extension of the application window for the government-backed loan schemes which apply to any business in the UK.”