Chancellor Rachel Reeves delivered the Spring Statement on Wednesday 26 March, and hairdressers eagerly watched to see if there would be any response to the recent Save Our Salons protest and calls for tax reform.
The chancellor has made further cuts to welfare benefits and government departments, and also announced updated growth forecasts. As promised, there will be no further tax increases.
Last week, the government unveiled changes to the benefits system, aimed at saving £5bn a year by 2030, but Reeves will widen those cuts today after she was told the reforms would save at least £1bn less than planned.
The OBR (Office for Budget Responsibility) has revised down the UK's growth forecast for 2025 from 2% in the autumn to 1% today.
The chancellor faces pressure over the performance of the economy, with growth remaining sluggish despite it being the government's top priority.
Rachel also confirmed a £2.2bn increase in defence spending.
Spring Budget 2025: The Key Facts for Hairdressers
Here's a breakdown of the key factors that will impact hairdressers and the hairdressing industry.
Small Business Updates
Sadly, there’s not likely to be much change for small businesses, especially after the tax hikes seen in last year’s Autumn Budget. That’s on top of the 6.7 per cent National Living Wage increase (for those over 21) which will be introduced on April 1.
A crackdown on tax evasion
Rachel Reeves pledged a further crackdown on tax evasion. She says there will be no tax increases as a result, but adds that when working people are paying their taxes, it is not right others are avoiding doing so. The Treasury will set out plans today that will "increase the number of tax fraudsters charged each year by 20%".
