Give hairdressers’ VAT bills the chop
RISHI Sunak is being urged to save the hairdressing industry from the chop by cutting VAT on salon services to five per cent in the Budget.
SNP MP Alison Thewliss urged the Chancellor to heed industry warnings and deliver VAT relief to prevent thousands of jobs losses.
Unlike the hospitality industry, which has had a VAT reduction to five per cent since lockdown, hair and beauty salons have shut for months without the same support.
The Save Our Salons campaign is putting pressure on the Treasury to reduce VAT from 20 per cent to five permanently.
A recent survey of 5000 salons across the UK revealed 62 per cent were unsure if their businesses would survive past the end of the financial year.
Thewliss, the SNP Treasury spokeswoman, said: “The coronavirus pandemic and public health measures have had a significant impact on the hair and beauty industry, with many facing unmanageable levels of debt and uncertainty over whether or not they will be able to open again. “The industry is not just a familiar sight on the high street that is vital to communities, it contributes over £9billion annually to the UK economy and employs hundreds of thousands of people, the majority of them women.”
The survey of 5000 UK salons found 18 per cent of businesses were sure they would close.
Thewliss added: “That is why it is critical that the Chancellor heeds industry calls and chops the VAT for the hairdressing, beauty and holistic service industry down from 20 per cent to five per cent in the upcoming Budget – as it has done for the hospitality sector – if it is to ensure salons and services can get back on their feet.” The SNP is also pressing to extend the VAT cut for pubs and restaurants until the end of the year in order to rescue the ailing hospitality industry.
The Chancellor lowered the rate to five per cent last year for food and soft drinks and is planning to keep it in place until at least June.
But MPs and business leaders are demanding the rate stay in place for another 12 months.