How will the 2019 general election affect you and your salon business?

The outcome of the 2019 general election, which is taking place across the UK on Thursday 12 December 2019, will affect everyone, but depending on the outcome it could also have a significant impact on how you work in the salon and how you run your salon business. The National Hairdressers Federation chief executive Hilary Hall explained: “The parties will confirm their policies when they publish their manifestos so the details may still change. Both the Labour Party and the Conservative Party are committed to raising minimum wages and protecting the rights of people working in the gig economy. There are clear differences in the parties and their approach to corporation tax and on Brexit. It’s important that salons take the time to look at party policies because there’s no doubt they will affect you and your business in the years to come.” Here is the National Hairdressers Federation’s guide to how each individual party’s current policies could have a positive or negative impact on your everyday working life, but please note these will be subject to change in the run up to the election.

How will wages be affected by the 2019 general election result?

If Labour win on the 12 December: The National Living Wage will increase to £10 per hour from age 16 in 2020. There will be a four-day working week (32 hours) within the next decade. If the Conservatives win on the 12^th December: The National Living Wage will increase to £10.50 per hour within five years and the National Living Wage threshold would reduce from 25 to 23 from 2021 and to 21 by 2024. If the Liberal Democrats win on the 12^th December:  There will be an independent review on how to set a Living Wage across sectors.

How will self-employment be affected by the 2019 general election result?

If Labour win on the 12 December: The law around employment status will be modernised and there will be a clamp down on ‘bogus self-employment’ with the burden of proof shifting to employers. If the Conservatives win on the 12^th December:   There will be commitment to the Good Work Plan and greater protection for people working in the gig economy. If the Liberal Democrats win on the 12^th December: The zero hours contracts will be scrapped.

How will small businesses be affected by the 2019 general election result?

If Labour win on the 12 December: The main rate of corporation tax will rise to 26% over three years with a small profits rate of 21% for businesses with a turnover of less than £300,000. If the Conservatives win on the 12^th December:   There will be a £31 million package of support to help small businesses grow and corporation tax is set to fall from 19% to 17% in 2020/21. There will be a pledge to keep three million businesses out of VAT by maintaining current VAT thresholds of £85,000. If the Liberal Democrats win on the 12^th December: Corporation tax will be scrapped in favour of a ‘British Business Tax’.

How will business rates and the high street be affected by the 2019 general election result?

If Labour win on the 12 December:  There will be a reform to business rates, including switching from RPI to CPI and a pledge of £250bn for businesses to stop British high streets from deteriorating.  If the Conservatives win on the 12^th December:    There will be a £3.6bn Towns Fund pledge to re-energise local economies, including £1bn for the Future High Streets Fund. If the Liberal Democrats win on the 12^th December: There will be a review of business rates, especially for small businesses who would be a priority for any future business tax cuts.

How will apprenticeships and T-levels be affected by the 2019 general election result?

If Labour win on the 12 December: There will be an investment for colleges to deliver T levels and pre-apprenticeship trainee programmes. There will be double the number of apprenticeship completions at level 3 by 2022 and the apprenticeship levy will be maintained. If the Conservatives win on the 12^th December:   There will be a pledge to spend £2.45bn on apprenticeships in 2019-2020 and there could be a review of the apprenticeship levy. If the Liberal Democrats win on the 12^th December:  There will be an expansion of higher vocational training such as higher apprenticeships and foundation degrees.

How will Brexit be affected by the 2019 general election result?

If Labour win on the 12 December:  The deal agreed with the EU will be secured and a referendum will be held with the secured deal and remain both given as options. If the Conservatives win on the 12^th December:   The Brexit deal agreed with the EU will be delivered. If the Liberal Democrats win on the 12^th December: The Brexit deal will be taken to a public vote with remain as an option.