Nhbf call for government action to help salon recovery

As the National Hair and Beauty Federation (NHBF) publishes the latest State of the Industry Report, the body is calling for government action to ensure that hair and beauty salons and barbershops are given the best chance to recover following the devastation caused by the pandemic. September’s survey showed growing evidence of sector resilience and businesses getting back on their feet, but the emergence of the Omicron variant and renewed restrictions across the UK over the winter has had a chilling effect. But it isn’t all bad, keep scrolling to find out how the NHBF plan to help...

The Negatives

• Although 42% are breaking even, nearly 40% are either making a small or substantial loss and only 19% are making a small or good profit (previously 43%). As a result, 58% of respondents intend to raise their prices over the next three months (up from 40%).
• A significant 81% of businesses are either partially or completely reliant on Government support to continue trading (up from 66%).
• 54% of businesses have debt; the level of debt has increased from 52% over the last 12 months and more than two thirds (68%) have used personal savings to keep themselves going.
• Over the last three months, 18% have cut back on apprentices and only 15% are likely to take on new staff in the next three months (down from 27%).
• Business confidence in the sector has weakened, with only 40% confident in their recovery (down from 63%) and a significant 52% not sure. This is close to the lowest confidence point we have recorded, in November 2020, and the most uncertain that businesses have been since the survey started.

The Positives

Despite this, the hope of many remains high with over 40% intending to grow their business. We hope to see this number grow as the NHBF call for government action on the following:

1. The reintroduction of the Job Retention Bonus through to the summer of 2022 and restraint on further increases to the National Minimum Wage and apprenticeship rate until such time as the sector can continue its recovery.
2. An increase in the 50% discount on business rates for 2022-23 and flexibility on repayments of CBILS (Coronavirus Business Interruption Loan Scheme) and bounce back loans to offer much needed support to those suffering financial hardship.
3. More attractive apprenticeship incentives to employers, focusing on the development of affordable apprenticeship schemes specifically for small businesses in order to make it financially viable for them to recruit and retain apprentices.
4. A commitment to make financial support via local authority Additional Restrictions Grant (ARG) and grants in the nations available to businesses as soon as possible, with further support reviewed as any future restrictions are introduced.
5. Continued communication between the sector and UK and devolved governments to tailor current and future guidance in a clear and accessible way. More forward thinking to ensure the planning and implementing of any future changes giving businesses adequate time to adjust.

Richard Lambert, NHBF chief executive said: “Ours is a sector that continues to show some optimism for the future despite all that the pandemic has cost businesses. We are confident that with continued support from each national Government, further UK Government support into the spring and incentives for apprenticeships, the personal care sector will recover to play an important role in the UK’s sustainable economic recovery, the future of high streets and people’s wellbeing. But without that support, jobs will be lost and many well-established, but now deeply indebted businesses that have exhausted their reserves, will close." The survey received 2,851 responses between 10-19 January. Nearly 70% of respondents were salon or barbershop owners, and 51% are involved in the wider space renting, mobile and freelance part of the sector. These views were gathered from all over the UK.