Dame Caroline Dinenage, Member of Parliament for Gosport, has warned that the Government’s hike to Employer National Insurance contributions and increase in the National Minimum Wage risks driving the UK’s £5.8 billion hair & beauty sector into the ground.
In a Parliamentary debate secured by Julia Lopez MP, Caroline stressed that since the Spring Statement, she has received frequent messages from business owners who are seriously concerned about their future.
Caroline emphasised that the rising labour costs, an extra £25,000 per year for the average small salon in Gosport, are entirely unsustainable and risk forcing businesses into the black economy or closure. She challenged the Minister to U-turn on these proposals.
The Secretary of State for Work and Pensions has introduced welfare reforms aimed at incentivising people back into work, but Caroline has asked the Government how this can be coupled with policies that will force the closure of many small businesses.
Caroline also warned that the Government will make over 1,000 apprenticeships in the sector unaffordable, closing the door to young people.
Speaking during the debate, Caroline said:
“This is existential for many small salon owners who have been pillars of our high streets for decades.”
“These businesses are not just about looking good, they support local communities, employ a disproportionate number of skilled women, and contribute millions to our economy.”
Caroline will be hosting a roundtable with those in the Hair and Beauty industry on Monday, 28th April, to hear directly about the pressures facing the sector.
ENDS
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Note to editors:
The recording of the Westminster Hall debate on the Impact of Government Policy on the Hair and Beauty Sectors is available here: https://parliamentlive.tv/event/index/061acbb2-7b0f-454e-96a1-08548debcf9d?in=16:55:07
