Hairdressers not impressed by the budget
Despite appearing to be a Budget that sympathised with the needs of SMEs (small and medium-sized enterprises), the hairdressing industry appears unimpressed.
On the surface Chancellor, Alistair Darling seemed to have listened to the business community, with greater pressure on banks to provide finance; entrepreneurs' relief doubled; a cut in business rates; and a doubling of business allowances on capital expenditure. But it is, it seems, too little too late for hairdressers.
The National hairdressers' Federation (NHF) dismissed the Budget as a "calculated piece of pre-election planning".
Said secretary general, Eileen Lawson: "This was the government drawing up the political battle lines with the Conservatives rather than doing anything significant to boost recovery, far less growth, in the UK."
The short-term nature of announcements such as the reduction in business rates for a year from October were not sufficient to enable businesses to plan for the longer term," said Eileen.
On the reduction in business rates, Eileen said: "While the reduction can be applauded, the applause at this stage can only be muted because NHF members do not know yet the effect of ending the transition rate and the result of the revaluation exercise."
Said John Carne, owner of John Carne Hairdressing in Guildford, Surrey: "This budget was a bit of a non-event as, with the election on the horizon, it is isn't going to make a significant difference. Yet again the national debt has been hidden and middle, working Britain is paying the cost. None of the new tax concessions will clear the problems they've created."
Said Hellen Ward, managing director of Richard Ward Hair and Metrospa: "We all have to be realistic and think not just of the impact to our businesses but of how this budget is going to affect our clients. The government has chosen the middle classes and the high earners to repay the deficit, so if are clients are going to be suffering, then ultimately we will be too as their spending power will be reduced."
"A cautious non-event," is how Charles Dodd, co-owner of Cutting Room Creative, Leeds, described the Budget. "The real Budget will come very soon after the election and this is the one that will hurt - whoever gets in."
Ben Delicompagni, managing director of Midlands salon chain Francesco Group had a slightly more positive response to the Budget, although he remained cautious.
"Francesco Group is cautiously optimistic about the Budget. While we await more details, business rate relief should help us all. Also the support for the entrepreneur is welcome.
However, this is a pre-election budget and post-general election we may find an emergency budget is called with a very different outcome."
While Thomas McMillan, co-owner of Cox McMillan, which has salon in London and Glasgow recognised the Budget had some positive for small business, he too recommended caution.
"Be prudent with your cash and plan for the other side of the election - only then will we know what we are really in for. When borrowing money, be conscious of interest rate increases as this will undoubtedly rise over the next two years."
The Budget at a Glance
Entrepreneur relief doubled - currently those who sell their business are taxed just 10% (as opposed to 18%) on the first £1 million in proceeds. This will be doubled to £2 million.
Business Rates to be halved from October - some smaller business won't pay rates at all, the chancellor claimed. Details to be conformed.
Investment allowance doubled to £100,000, meaning business can claim back capital expenditure up to this new threshold.
More pressure on banks to lend - RBS and Lloyds are to provide £94 million in new business loans, with nearly half of this sum going to SMEs.
