5 days ago
Beauty sector faces huge job losses as Labour's tax hikes turn ugly
Beauty businesses face shedding 14,000 jobs this year due to Labour's tax rises, a report has found.
The sector had been booming, with brand owners such as Trinny Woodall and Charlotte Tilbury cashing in.
But industry bosses say the Government's tax hikes are now harming economic growth which will mean fewer jobs available for young people.
The report, by advisory firm Oxford Economics, predicts the number of jobs in the sector will shrink by two per cent – about 14,000 – this year.
In April, hair and beauty firms were hit hard by Chancellor Rachel Reeves 's rise in employers' National Insurance. Firms also suffered an inflation-busting increase in the minimum wage.
The bleak outlook for jobs comes after the sector surged following the pandemic. In 2024, it was worth £30.4billion and employed 697,000 people, figures from the British Beauty Council show.
Millie Kendall, the council's boss, said: 'The Government talks about aiming for growth but, unfortunately, its actions have caused exactly the opposite.
'It is a shame as we had the momentum to produce exactly what they wanted as well as help rescue the high street. But placing the tax burden on employee-dense businesses has taken the wind out of our sails.'
Ms Kendall added this would be a hammer blow for young people, who often get their first experience of employment in a shop, salon or barbers. She said: 'This is a tragedy for [them] and those looking to get back on the career ladder.'
The British Hair Consortium, which represents 50,000 hairdressers, has said salons are now sacking staff and bringing them back on a self-employed basis to avoid the tax hikes.
A report by CBI [Confederation of British Industry] Economics, has also predicted there will be a 93 per cent fall in jobs in the sector by 2030 – taking the heaviest toll on female workers. Some 84 per cent of those employed in the beauty industry are women.
