Originally posted on Professional Beauty: Thousands of beauty salons could see Business Rates eliminated in Autumn Budget
An estimated 2,000 hair and beauty salons across England could be lifted out of paying business rates under proposed Autumn Budget tax threshold reforms.
Prime Minister Andy Burnham and Chancellor of the Exchequer John Healey are expected to honour a summer campaign pledge to raise the Small Business Rates Relief (SBRR) zero-rate threshold from £12,000 to £18,000 in rateable value at the Budget on October 28, according to a report in The Times.
The expected tax reform is designed to offer commercial high-street businesses breathing space against rising operational costs.
According to analysis by tax firm Ryan, raising the threshold will lift approximately 75,000 small commercial properties out of the business rates system entirely, including independent beauty and hair salons, cafés and retail shops.
The expected policy update will apply exclusively to businesses in England, as business rating policies remain devolved in Scotland, Wales and Northern Ireland.
Responding to the reports, the National Hair & Beauty Federation (NHBF) welcomed potential tax relief for the sector while highlighting ongoing operational pressures facing employers.
Fiona Johnston, NHBF president, said, "We welcome any tax reduction for our sector at a time when a significant proportion of salons are struggling."
Data from the NHBF September State of the Sector Employer Survey underscored the challenging environment, with 39.7% of employers reporting workforce reductions in the preceding three months, compared to 4.8% that increased staffing levels.
Under the proposed Budget plans, it is understood that the Government also intends to phase out SBRR gradually for properties with rateable values between £18,000 and £21,000, tapering support rather than removing it abruptly.
Rateable values reflect the estimated annual market rental value of a commercial property rather than overall business turnover.
Salon and spa operators can review current property valuations and check existing relief status via the official Government Business Rates Relief portal.
What do the proposed business rate changes mean for hair salons?
Eve Oxberry
Eve Oxberry is head of editorial for Professional Beauty Group, which includes Professional Beauty, Hairdressers Journal International and Aesthetic Medicine. She is also editor of Professional Beauty. She oversees the company's print, web and social media content and writes reviews, news, features and more. Eve has been a business journalist for over 20 years and has specialised in the beauty, spa, hair and aesthetics sector for the majority of those. She also organises conference and live stage programmes for the company's events and regularly hosts live panel discussions, webinars and interviews, as well as hosting The Pro Beauty Pod podcast. Eve has also authored a book on makeup techniques and appeared on TV, radio and in print as an expert on the professional beauty and spa market.
