20 December 2022
This week's update covers the following:
- NHBF informs report on investment in skills training and apprentices
- How the NHBF lobbied for you in 2022
- Rail strikes continue
- Welsh Government: Budget to "protect public services and the most vulnerable"
- Government announces closure of Help to Grow: Digital scheme
- Statement made by James Cartlidge on electric generators
NHBF report informs report on investment in skills training and apprentices
Last week the House of Commons Public Accounts Committee (PAC) published a report on developing workforce skills for a strong economy, which includes the hair & beauty industry. PAC is the Parliamentary Committee responsible for examining the value for money of government projects and the delivery of services.
Richard Lambert, NHBF chief executive, said:
'We welcome the PAC report, which calls on the Government to improve support to SMEs, review how it incentivises employers to invest in skills and improve the flexibility of the apprenticeship levy so that more businesses can benefit.
The NHBF fed into the Committee's inquiry using our Careers at the Cutting-Edge skills report, and we're pleased that the PAC report recommendations reflect this. We know that sector business recruitment intentions of staff and apprentices have dipped in the autumn. Further incentives and support are vital to developing future talent in the sector, as businesses can barely afford to take on staff in the current economic climate. NHBF will continue to work with other sector organisations to take forward a Sector Skills Action Plan coordinating activity across the industry on education and standards, recruitment and financial support.
Here are the links to the Public Accounts Committee report on workforce skills.
How the NHBF lobbied for you in 2022
No.10 business Team, Prime Minister's office: 'The hair & beauty sector represents an important pillar of the UK economy, and we will continue to work with NHBF and the industry on the challenges you face'.
A year in numbers
- 2 meetings with the BEIS Minister responsible for Personal Care.
- 19 meetings with UK Government officials and devolved administrations.
- 4 letters to the Chancellor and Party Leadership candidates.
- 52 letters to Ministers on key issues.
- 14 meetings and events attended in Parliament.
- 14 submissions to Government consultations and parliamentary inquiries
- 4 published State of the Industry surveys plus a two-year summary with an infographic
- 1 major report Careers at the Cutting Edge on the sector skills crisis Outcomes
In 2022, we secured the following:
- Amendment to the Health and Care Act delivering a regulatory regime for aesthetic non-surgical cosmetic procedures.
- Wider distribution of the Additional Restrictions Grants (ARG) to personal care businesses and setting up of the Close Contact Fund in Scotland in January.
- Support on energy bills through the Energy Bills Relief Scheme until March 2023.
- Business rates support in England and Wales from 2023 through a 75% discount on business rates, freeze the multiplier and reform to transitional relief.
Rail strikes continue
Businesses are being advised to prepare for industrial action across the railway network. This comes after RMT members rejected the latest pay offer. It means strike actions starting today and again throughout December and will proceed as planned into the new year.
Welsh Government: Budget to "protect public services and the most vulnerable"
The Welsh Government has published its new Budget to help protect public services and the most vulnerable in the face of a "perfect storm of financial pressures".
In the report, it states the following:
Business rates support
- The Government continues to support those sectors most directly affected by the pandemic through a 2023-24 retail, leisure and hospitality rates relief scheme. This will provide more than £140m of non-domestic rates relief for eligible businesses.
- Retail, leisure and hospitality ratepayers in Wales will receive 75% non-domestic rates relief throughout 2023-24. Like the similar scheme announced by the UK Government, the Welsh Government's scheme will be capped at £110,000 per business across Wales. Our approach ensures that businesses in Wales will receive comparable support to that provided in other parts of the UK.
- In addition to the retail, leisure and hospitality rates relief scheme, the non-domestic rates multiplier in Wales will be frozen in 2023-24. The estimated cost of this measure is more than £100m.
- The next non-domestic rating list will come into force on April 1 2023, following revaluation. The Welsh Government will provide all ratepayers whose liability is increasing by more than £300 due to revaluation with transitional relief. Any increase in non-domestic rates liability due to revaluation will be phased over two years.
- A ratepayer will pay 33% of their additional liability in the first year (2023-24) and 66% in the second year (2024-25) before reaching their full liability in the third year (2025-26). The Welsh Government is providing £113m over two years to fund this transitional relief, supporting all areas of the tax base through a consistent and straightforward transitional scheme.
- This £319m package of support is in addition to our fully funded permanent relief schemes that provide over £240m of relief to businesses and other ratepayers annually. We are committed to supporting businesses to recover from the pandemic's impacts and support them through the current cost of living crisis to ensure Wales continues to have a thriving economy. This will result in a combined package of £460m over the next two financial years.
Apprenticeships
- The Welsh Government continuing to provide investment for our flagship apprenticeship programme. The Welsh Government is working against a backdrop of significant economic challenges and uncertainty, exacerbated by the upcoming loss of EU funding. To help combat this, an additional £18m will be invested in apprenticeships, highlighting our commitment to deliver a programme focussed on successful and high-quality upskilling opportunities.
Government announces closure of Help to Grow: Digital scheme
Businesses have less than two months to apply for the Help to Grow: Digital scheme, the Government has announced, following a decision to close the programme. The programme will close to new business applications for discounts on February 2 2023. Discounts issued for eligible software must be redeemed within 30 days from the issue date.
The scheme has supported businesses to grow, but with take-up lower than expected, the Government cannot justify the continued cost of the scheme to the taxpayer. The decision has been taken to refocus efforts towards other support mechanisms for small businesses, ensuring businesses get the backing they need in the most efficient and productive way possible.
Government announces phased mandation of Making Tax Digital for ITSA
Self-employed individuals and landlords will have more time to prepare for Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) following a government announcement today (December 19 2022).
Understanding that self-employed individuals and landlords are currently facing a challenging economic environment, and the transition to Making Tax Digital (MTD) for Income Tax Self-Assessment (ITSA) represents a significant change to taxpayers and HMRC for how self-employment and property income is reported; the Government is giving a longer period to prepare for MTD. The mandatory use of software is therefore being phased in from April 2026 rather than April 2024.
Statement made by James Cartlidge, The Exchequer Secretary is the Treasury on electricity generators
From 1 January 2023, the government is introducing a temporary 45% tax on extraordinary returns made by some UK electricity generators. HM Treasury will today publish on GOV.UK draft legislation, along with an updated technical note explaining the policy in detail. The levy will be applied to a measure of extraordinary revenues, defined as revenues from selling periodic output at an average price above £75/MWh. That is approximately 1.5 times the average price of electricity over the last decade.
This temporary measure is not designed to penalise electricity generators. It is instead a response to the fact that, as a result of exceptional and unforeseen geopolitical events, some electricity generators are realising extraordinary returns from higher electricity prices – higher prices that have imposed substantial costs on households and business energy users and necessitated the government to take unprecedented action with £55 billion to directly help households and businesses with their energy bills.