// BBC BUSINESS NEWS — FINANZA
Salon owners urge Budget VAT cut as staffing pressures grow
Marcus Perkins said rising costs were making it harder for salons to employ staff and train apprentices
After 22 years running a salon, Marcus Perkins says he is increasingly worried about the future of the hair and beauty industry.
Rising costs are making it harder for businesses to employ staff and invest in apprenticeships, he says, while more salons are turning to self-employed models to survive.
"Seeing salons close on the high street is very scary," he said. "I'm very scared myself. Luckily it hasn't happened yet but who knows what the future holds?"
Perkins is among more than 2,000 salon owners who have signed an open letter calling on the Chancellor John Healey to cut VAT on hair and beauty services from 20% to 10% in this week's Budget.
The letter is backed by the British Hair Consortium (BHC), which argues rising business costs are placing increasing pressure on traditional salon employers.
However, the industry has also seen growing numbers of stylists move into self-employed arrangements, with hairdressers often renting a chair within a salon rather than being directly employed.
A Treasury spokesperson said hair and beauty businesses played an important role in supporting jobs, apprenticeships and thriving high streets.
They added that the sector had benefited from reforms to business rates.
Stylist Trearna Hart fears fewer salons will be able to train the next generation