Autumn statement receives mixed reaction

The small business community, including salon owners, was hoping for some good news in the Government’s Autumn Statement, and there were several reasons to be optimistic. The National Hairdressers’ Federation welcomed elements of  the Statement,  most notably the capping of increases in business rates next year and the decision to extend small business rate relief. Hilary Hall, chief executive of the NHF, said: “Both measures will help improve confidence on the high street where, for many retailers and salons, conditions remain challenging, even with the economy now beginning to improve. His announcement that businesses will be able to pay rates in monthly instalments is also positive.” Not everything within the Statement met with the approval of the NHF however with the organisation condemning the lack of any intent to set in motion a full review of business rates. Said Hilary: “Reform is long overdue. The current system of business rates is outdated and disadvantages businesses, such as hairdressing and barbering, which have no option but to have a physical presence on a high street. We’d like a model that takes better account of competition from online retailers, one that is more fairly balanced across town centre, out-of-town and online retail. "We urge Mr Osborne to follow up his decision to extend small business rate relief by doing away with the constant uncertainty about its renewal and making it a permanent benefit for small businesses. It’d also be valuable for the government to put its weight behind an advertising campaign promoting its existence to small businesses and raising awareness. Finally, we’d like to see more work being done to encourage councils to communicate it locally as well as make it simpler and easier for small firms to access." NVQ qualification supplier City & Guilds welcomed the announcement that a greater focus would be given to employee ownership of apprenticeship schemes, but also expressed concern over plans for employees to be funded directly for apprenticeship schemes. Said Chris Jones, chief executive, City & Guilds Group: “It's not the focus on employer ownership that's risky - that's something we actually welcome. It's the assumption that employers have the time - and indeed the will - to cope with the additional bureaucracy these reforms will entail. Rather than incentivising employers, I fear they'll be put off by what's been announced and decide it is simply not worth the hassle. That would be a disaster, and another generation of young people in this country would lose out. “All employers, regardless of size, will feel the effects. The reforms will require additional resource. There will be even more hoops to jump through to establish an apprenticeship. Where is the incentive there?  Employers should certainly be in the driving seat for apprenticeships. But without enough involvement from educators and awarding organisations, the road ahead is bumpy.” The NHF also expressed concern over Govern plans regarding apprenticeships. Said Hilary: “Our members, who mostly run small and micro hairdressing salons and barber shops, have expressed strong reservations about the extra administrative burden of switching to a direct payment system. Salon owners are very clear they’d prefer the current system, where payments go to training providers, to continue.