NHBF Survey Highlights Sector Resilience Amidst Rising Pressures – Calls for Targeted Government Support Grow

NHBF survey highlights sector resilience amidst rising pressures – calls for targeted Government support grow

The National Hair & Beauty Federation’s (NHBF) latest State of the Industry survey reveals a personal care sector that remains determined and adaptable, despite mounting financial and recruitment challenges. The April 2025 report, based on responses from over 430 businesses across the UK, underscores the need for targeted Government support to safeguard jobs, training opportunities and the long-term sustainability of high street salons and barbershops.

While 40% of businesses are still managing to turn a profit and a further 39% are breaking even, signs of pressure are increasing. More businesses are reporting losses (21%, up from 17% in January), and turnover expectations have worsened, with 30% expecting a decline over the next three months. Nevertheless, many businesses continue to adapt by raising prices (74% – the highest recorded to date), managing costs, and finding ways to remain competitive.

The sector is particularly impacted by recent changes to wage rates and National Insurance thresholds. Increased employment costs are affecting recruitment, with only 8% of businesses likely to take on new staff and just 5% planning to recruit apprentices – a concern for the future skills pipeline. Business confidence in long-term survival has dipped, although a majority (68%) remain hopeful.

Caroline Larissey, chief executive of the NHBF, said:

“Despite considerable pressures, it’s clear that many hair and beauty businesses are showing real resilience. But they cannot do it alone. With the right support – from VAT reform to practical help with apprenticeships and energy bills – we believe this sector can not only recover but grow. The NHBF is committed to ensuring our Members have the guidance, resources and representation they need to thrive. We urge Government to act decisively to unlock the full potential of this vibrant industry.”

Key areas where Government action is urgently needed

The NHBF is calling for urgent Government action in five key areas:

• VAT reform, including reduced or tiered rates to support growth;
• Apprenticeship funding of at least £3,000 per employee to address affordability;
• Retention of business rates relief for small, high street businesses;
• Energy cost flexibility and support, particularly for small and micro businesses;
• Stronger enforcement against tax-evading operators that undermine legitimate employers.

As the voice of the hair and beauty sector, the NHBF continues to provide expert business advice, free guidance, and advocacy for Members of all sizes across the UK. From navigating cost challenges to future-proofing operations, the NHBF is dedicated to helping businesses build resilience and remain a central part of their communities.