What does the Spring Budget mean for beauty businesses? BABTAC explains…
With Prime Minister Rishi Sunak announcing his Spring budget yesterday, here British Association of Beauty Therapy and Cosmetology (BABTAC) shares the key points that could affect beauty businesses…
- Household support Fund is extended for 6 months.
- National Insurance will have a reduced rate by a further 2p from 10% to 8% from April.
- The threshold for VAT Registration has increased from £85k to 90k.
- High Income Child Benefits threshold has gone up from £50k to £60k.
- A 5p cut on fuel duties has been extended for 12 months.
CEO and chair of BABTAC and CIBTAC, Lesley Blair MBE says, “The ongoing cost-of-living crisis has affected everyone and remains a huge concern for many beauty businesses. We’re hopeful that this budget will offer some relief, welcoming in particular the increase to the VAT threshold, given our ongoing appeals to government for VAT reform for our sector.”
She continues, “However, as one of the hardest hit industries during and post-pandemic (estimated to be an average financial loss of £11,603 on earnings[1]), we believe far more needs to be done to encourage the emergence of new talent and growth in our sector. Not only are we a proven leading contributor to UK economy, but also a sector unique in our ability to improve the wellbeing of society, while supporting the revival of the British High Street. We believe more support should therefore be forthcoming and will continue to liaise with government to secure this.”
The full Spring budget can be found here.
