Education Station
Welcome to our regular feature with the NHBF, Visit the Education Station each month to hear unrivalled knowledge and expertise on the latest trends and discussions to elevate your business. This month, we learn about The State of the Industry Survey and what this means for the hair and beauty industry.
The State of the Industry Survey released in January 2024 by the National Hair & Beauty Federation (NHBF) painted a detailed picture of the hair and beauty industry’s current state and outlook. The report revealed that the sector has been experiencing a slow but steady recovery since 2023. While some businesses are making a profit, there has been an increase in those that are making a loss (20% up from 14% in September), with concerns around energy costs and the National Living Wage at an all-time high.
The survey also found that businesses are facing significant challenges when it comes to staffing, recruitment, and apprenticeships. There has been a dip in recruitment intentions, 17% (down from 27%), with fewer businesses planning to take on new staff or apprentices. This indicated a skills crisis in the industry, with a lack of experienced staff and reduced apprenticeship starts.
The burden of VAT and the disincentive to growth created by the threshold are significant barriers to growth within the industry. The report highlighted the need for reduced rates of VAT to support businesses at a crucial time.
Despite these challenges, the hair and beauty industry remains resilient, with survival prospects largely positive. However, debt levels remain high, and for many businesses, it will take between 2 and 5 years to clear.
The State of the Industry Survey report emphasised the need for targeted support to ensure continued growth. The hair and beauty industry is an essential sector of the economy, and its resilience through challenging times is admirable, but further support is necessary to maintain and enhance its contribution to the economy.
The NHBF will continue to fight for the sector in the highest places. The NHBF is asking for more support from the UK Government to help businesses grow and create more jobs. Although the government has extended the 75% retail discount, many businesses are still struggling to pay their staff due to rising wages. The sector needs funding to hire and train more young people and to support small businesses that can’t afford to pay higher wages. The tax system also needs to be fairer so that businesses with employees are not at a disadvantage compared to those who use self-employed workers. With more support, the sector can continue to contribute to the UK’s economy and improve the well-being of the population.
Visit www.nhbf.co.uk to read the full report.
