Chancellor John Healey delivered the Autumn Budget on Wednesday 28 October in the House of Commons. Here’s a breakdown of the key factors that will impact hairdressers and the hairdressing industry.
Autumn Budget 2026: The Key Facts for Hairdressers
Business Rates Relief
Ahead of discussing his points surrounding Business Rates Relief, John Healey commented: “Since day one, I’ve said I’ll be a Chancellor who champions the small British firms that give character to our communities. The bakeries, the cafes, the hair salons – they make the places that we live and work the places we love. And I want these businesses to invest, to recruit, to expand.”
He then announced he will be raising the threshold at which small companies start paying business rates; for retail, hospitality and leisure businesses, the small business rate relief will increase from £12,000 to £18,000.
To pay for this support for high streets, John Healey explained he will be raising taxes on gambling.
Wages and Benefits
John Healey confirmed that both the National Living Wage and National Living Wage will increase by 3.9% in April 2027.
It was also announced that self-employed fathers and partners will be eligible for paid parental leave for the first time.
Inflation
The Office for Budget Responsibility (OBR) gives a mixed outlook on the strength of the UK's economy; John Healey adds that the OBR sets out that the war in the Middle East is a key driver affecting today's forecast.
It expects GDP to expand by 1.2% this year - that's better than its outlook in March.
But next year, it forecasts 1%. That's a sharp drop from earlier expectations of 1.6% growth.
Energy
Twenty million households in council tax bands A-D will receive a £100 ‘household energy payment' this winter - paid directly into bank accounts for help with rising energy bills. However, no announcement was made regarding energy bills for businesses.
The cut to VAT on electricity bills from 5% to zero had been expected to end in March 2027. That will now be extended until July.
Support for Business Founders
John Healey announced a new trading allowance, which will raise the amount people can earn from a new venture tax-free from £1,000 to £3,000.
The chancellor is also launching a new young entrepreneurs allowance, which will cover a year of living costs for young founders "while they turn their ideas into businesses".
The Response from the Hairdressing Industry to the Autumn Budget 2026
Fiona Johnston, NHBF President, said:
“Raising the business rates relief threshold is a welcome step for high street hair and beauty businesses. For those eligible, it will ease a significant fixed cost and create more room to invest in their teams, training and premises.
However, the benefit must be considered alongside rising employment costs. Employers want to pay their teams fairly, but further wage increases must be funded from businesses already managing tight margins.
The real test is whether this Budget gives businesses the financial confidence to retain staff, recruit and offer apprenticeships. Support with one cost must translate into greater stability across the business.”
Josie Jackson
Josie is a content writer at Professional Beauty, supporting the team with content for the print magazine, website and social media channels. With over four years' experience as a health and beauty journalist, Josie is dedicated to creating informative yet accessible content for all beauty professionals.
