What does the spring budget 2020 mean for your salon?

The Spring Budget 2020 has announced a number of measures that will support small businesses with an emphasis on helping the economy during the current coronavirus situation. The National Hair and Beauty Federation has outlined how the Spring Budget 2020 will benefit your hairdressing business: Hilary Hall, NHBF chief executive said: “Hair and beauty salons are crying out for help to cope with the potential mass disruption of their businesses caused by the coronavirus. If clients stay away from salons for fear of catching or passing on the virus, or if large numbers of employees are off sick, salons will struggle financially.  The measures announced by the government today will go some way towards supporting salons, but if the spread of the coronavirus continues at the speed it is now, it’s unlikely that the support will go far enough.”

Spring Budget 2020 on Coronavirus

Statutory sick pay will be paid to people who need to self-isolate, even if they don’t have symptoms. Sick notes can be obtained remotely by employees via the NHS 111 service. Businesses with less than 250 staff will be refunded for sick pay payments for up to two weeks per employee. HMRC will set up a dedicated ‘Time to Pay’ helpline and will waive late payment penalties and interest for businesses struggling to pay their taxes due to coronavirus. Coronavirus business interruption loans of up to £1.2m will also be available to small businesses.

Spring Budget 2020 on Business Rates Relief

Business rates will be abolished in full for a year for any businesses with a rateable value below £51,000. Previous announcements had indicated that business rates would have halved for 2020 to 2021. Many salons and barbershops don’t pay business rates because they qualify for small business rates relief and will be eligible for a cash grant of £3,000. The Chancellor has also announced a ‘fundamental’ review of business rates which is due to report back in the autumn.

Spring Budget 2020 on Employment Allowance

The NIC Employment Allowance will be increased from £3,000 to £4,000 from April 2020. Independently of the Budget, the Bank of England has announced interest rates cuts to 0.25%. A number of banks have pledged to offer instant loans to small and medium sized businesses with no charge, as well as loan repayment holidays of up to 6 months.

Spring Budget 2020 on National Living Wage

The Chancellor confirmed his intention to continue increasing the National Living Wage, predicted to be £10.50 by 2024, provided economic conditions allow.

Spring Budget 2020 on Neonatal Leave

A new Neonatal Leave and Pay scheme will be introduced to give employees whose babies need intensive care after birth, up to 12 weeks paid leave. Entrepreneurs Relief will not be scrapped, but the lifetime allowance will be reduced from £10m to £1m. The government will invest £5.2bn in flood and coastal defences over the next six years and £120m for repairing flood defences damaged by recent storms.