Beauty Industry Battles for Survival: NHBF Calls for Urgent Government Support
The UK's hair and beauty industry is struggling to recover and is calling for further targeted government support to secure its survival and future growth, according to the latest State of the Industry survey by the National Hair & Beauty Federation (NHBF). The survey found that 25% of businesses are making either a small or substantial loss, while 44% are breaking even, and 30% are making a small or good profit. The general trend towards increasing prices continues, with 66% of businesses intending to raise prices in the next three months.
Energy costs, supplier costs, and rises to National Minimum Wage/National Living Wage (NMW/NLW) are having the biggest impact on the industry, leading to businesses removing non-essential expenditure, increasing prices, and holding off hiring staff or apprentices. Despite recent business support in the form of the 75% discount on business rates for retail and continued energy support through the Energy Bill Discount Scheme, the survey showed that reliance on government support remains high, with 71% of businesses partially or completely reliant on it.
Recruitment intentions remain low, with only 15% of respondents planning to hire new staff in the next three months, and only 9% planning to take on apprentices. Business survival expectations are still muted, with 49% confident of survival and 44% unsure of their future. Only 30% intend to grow their business, while 44% plan to remain the same size, and 25% plan to downsize or hand over the business.
The NHBF is calling for further targeted support on energy, wider business support, securing future sector talent, an urgent review of taxation, and a crackdown on tax-evading businesses. The organization also wants the government to support businesses that have signed up for higher-than-usual energy contracts, encourage banks to offer more flexibility on loan repayment, and provide apprenticeship incentives of up to £3,000 per employee. The survey received responses from 488 businesses in England, Northern Ireland, Scotland, and Wales.