Budget 2021: How it Will Impact Cosmetics, Hair and Beauty Industry

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Budget 2021 How it Will Impact Hair and Beauty
Industry
England's personal care sector is expected
to benefit from a host of grants and
reliefs announced in chancellor Rishi Sunaks
Budget yesterday. Offering some comfort to
struggling salon, spa and beauty owners,
the new Restart Grants earmark 5bn of
government funds for a one-off cash grant of up
to 18,000. Some good news comes with the
knowledge that the Furlough scheme, which pays
up to 80 of peoples wages, has been
extended until September and that there
will be two more grants available in April
and May as part of the Self-Employed
Income Support Scheme. And theres also help
for the newly self-employed, which will come
as welcome relief for the thousands of
people who took the plunge into being
their own boss before the pandemic hit.
Because the 19/20 tax return deadline had
passed this meant many newly self-employed
people were unable to apply for the
governments Self-Employed Income Support
Scheme but with the new budget, they too will
be able to apply for the final two grants
mentioned above. Business rate holidays have
been extended until June, and from there on they
will still be discounted by two thirds up
to a value of 2 million for closed businesses,
with a lower cap for those who have been
able to stay open during this time.
Something else for businesses to think
about is that the government is doubling
incentive payments to 3,000 for those who
hire new apprentices of all ages. Despite the
government support, we know that its not
going to be easy for everyone. Even Sunak
admits that, even with the new Restart
Grants, some businesses will also need loans
to see them through. As the Bounce Back
Loans and Business Interruption Loans schemes
come to an end, were introducing a new Recovery
Loans Scheme to take their place, says
Sunak. One part of the budget that the
beauty industry is not happy about is that
the personal care sector has not been
included in the new 5 reduced VAT rate.
Industry leaders from Millie Kendall MBE,
chief executive of the British Beauty
Council to Samantha Grocutt, president of
the Hair Beauty Charity, have both
expressed disappointment at the sectors
lobbying not being accepted. While there are
clearly some misgivings about the
governments decision to not extend the 5
reduced VAT to the personal care industry,
many are campaigning on a daily basis to
change the system, and with the economy
expected to return to pre-Covid-19 levels by
the middle of 2022, its clear that things can
only get better. Sunak commented on his
first budget, last year and how important
it had been for him at that time to do
whatever it took to support the economy
and the businesses and
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families that needed help. As he delivered
the 2021 budget he said it will take a
long time to recover from this extraordinary
situation, but we will recover. For further info
rmation on the budget 2021 visit
https//www.gov.uk/government/news/budget-2021-wha
t-you-need-to-know To find out if your
business is eligible for a Restart Grant
contact your local authority. You can find
them https//www.gov.uk/find-local-council Need
more advice? Check out https//hairnbeautywor
ld.com/ and to find out whats happening
next and how to prepare for reopening, stay
tuned! Contact Us Hair and Beauty
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