Nhf gives mixed reaction to autumn statement

The National Hairdressers’ Federation has welcomed chancellor George Osborne’s decision in yesterday’s Autumn Statement and Comprehensive Spending Review to extend 100% Small Business Rate Relief for the very smallest businesses for another year, until April 2017. But the NHF has expressed dismay at the government’s decision at the same time not to extend the so-called “retail discount” that also allowed shops – including hairdressers, barbers and beauty salons – to reduce their business rates by up to £1,500. The chancellor said the decision on Small Business Rate Relief would mean 405,000 of the country’s smallest businesses would continue not to have to pay any business rates at all, while a further 200,000 would benefit from only having to pay a tapered amount. NHF president Paul Curry said: “Mr Osborne’s decision to maintain 100% Small Business Rate Relief for another year is definitely good news.  Anything that makes life easier for small and micro businesses is helpful and welcome. However, we want to see 100% relief being made permanent, rather than something in the ‘gift’ of the chancellor and able to extended or taken away at a whim. That is something we will continue to push for.” On the scrapping of the retail discount, Hilary Hall, NHF chief executive, added: “The chancellor appears to be giving with one hand and taking away with the other. Salons will be happy about Small Business Rate Relief but retail relief was a valuable benefit that made a real difference for many salons and barber shops. The NHF was also disappointed that the chancellor did not take the opportunity to outline any initial findings of the government’s wider review into business rates. This is now expected to be unveiled at the March 2016 Budget. The NHF is campaigning for a wholesale overhaul of the rates system, including moving it away from a tax based around physical properties to one that better represents the modern high street, where shops are competing with online and out-of-town retailers. However, the NHF did give a warm welcome to the chancellor announcement that the Employment Allowance, which allows employers to reduce the amount of National Insurance Contributions they pay for their employees, will rise from £2,000 to £3,000 from next April. Finally, Hilary Hall said the NHF would be closely watching for further details about the new apprenticeship levy from April 2017. “The levy will not apply to the vast majority of salons because they are too small but our larger members, including those running franchised chains, are concerned about the possible effect this levy could have on them and how it will operate in practice”.