UPDATE Aug 2021
Government Action to rescue Hair & Beauty Salons UK
The hair and beauty industry was forced to close in March 2020 by government order and up to August 2021 the disruption to business continues.
REALITY OF TRADING TODAY
The majority are aged 16-24 and have not yet had 2 vaccines so still have to isolate if in contact with a covid positive person.
Salons still report only being able to trade at 50-70% capacity due to isolations, client cancellations due to covid, and London salons even worse due to city workers not returning.
DEBT WEIGHING DOWN THE INDUSTRY - STALLING ANY RECOVERY
Salons are DROWNING MAINLY IN GOV DEBT
- VAT debt as no reduced VAT was given to salons during any trading YET other service sectors were given a 5% rate until March 2022.
NIC/Pension debt accumulated debt in 2020 and continued reduced capacity from isolation after isolation.
Gov Loans 61% state they cannot afford to repay BBL & CBILS taken out to pay debts in 2020 ( this is due to believing they would be back at full capacity a year later)- Rent Arrears - 61% report rent arrears from the start of the pandemic.
PERSONAL LOANS - 19% have had to take on additional personal loans to pay rents & overheads.
JOB LOSSES
- 68% state they will have to make redundancies in Oct
- 7,500 salons have already closed their doors for good (upto Dec 2020)
- Salons cannot afford to employ apprentices in 2021
- EMPLOYED salons are nearing extinction with 63% now following a self-employed business model!
287,000 jobs at risk in High Street salons
WHAT DO WE NEED TO SURVIVE?
VAT
The Government has treated our industry unfairly. One of the only sectors completely locked down that could not do take-out hair cuts. We have not been given the same opportunity to recover like hospitality we were "forgotten"
We need the government to ACT and stand by their promise of "we will do whatever it takes " they said "stand by your people & we will stand by you"
- VAT reduction - a flat rate for the industry of 5% with no cap on t/o to register.
Deferred VAT is written off - or how do we possibly have any chance of recovery?
BBL/CBILS
Gov please read the Grimsey Review and ACT on the recommendations!
When salons took on GOV loans in order to keep the wolves from the doors they expected to be able to trade fully by Aug 21 but trading activity is far from full capacity. With staff isolations continuing, customers canceling last minute due to isolation/testing positive we are a long way off trading at capacity.
FURLOUGH
GOV furlough scheme is due to be withdrawn at the worst time as we enter a winter period and as cases are still on the rise.
Please extend furlough for salons in service sectors that cannot work remotely or have a hybrid model. without this lifeline, many will fold in fact 52% of registered businesses will likely fold by Dec 2020 see Grimsey review.
PLEASE SIGN