Supporting the hair and beauty industry during the coronavirus

The NHBF handles around 25,000 calls each year from Members – but those numbers have shot up in the last few weeks due to worries about the coronavirus.  When the virus first hit the news in the UK, the queries were mainly around how to protect salon staff and clients from exposure to the virus.  These measures appeared to be working well, and although many salons reported a drop in appointment numbers, others saw a surge in bookings from clients wanting to get in ahead of a potential lock-down.

Until late last week, the government was advising businesses to carry on as usual.  But the latest measures announced on Monday night advises people to distance themselves from others and to work remotely wherever possible.  That will have a massive impact on hair and beauty salons who are now deeply concerned about their ability to carry on their business if clients stay away.

Hilary hall, NHBF chief executive, said, “Wages are by far the biggest cost for salons.  Our Members are now asking for advice on laying off staff, making redundancies or temporary closures.  We have published a free blog, which is available to non-members as well as Members, to help support the hair and beauty industry through this crisis.  The blog is updated daily to make sure it reflects current advice.”

She added, “We have also been pushing hard with government departments such as the Department for Business, Energy & Innovation and the Department for Work & Pensions to do more to support the hair and beauty industry through these unprecedented times.” 

Last night, under pressure from businesses and trade bodies, the government announced further financial support for businesses struggling with the coronavirus situation:

• No business rates for salons of any size.  This is a change from last week’s Budget when the abolition of business rates was only for businesses with a rateable value below £51,000.
• Businesses with a rateable value of less than £51,000 can now access an additional cash grant of up to £25,000.
• Businesses which don’t pay business rates because they benefit from small business rates relief will see the £3,000 cash grant announced in last week’s Budget increased to £10,000. 
• Three-month mortgage holidays for those in financial difficulty due to coronavirus.
• Business loans on ‘attractive terms’, including a business interruption loan scheme which will provide loans of up to £5m, interest-free for 6 months, starting as soon as next week.
• Last week’s Budget announced that businesses with less than 250 staff will be refunded for sick pay payments for up to two weeks per employee and Statutory Sick Pay will start from day one (instead of day four).

Hilary said, “The financial support on offer needs to be available quickly – time is of the essence if hair and beauty businesses are to survive.  We’re still waiting for information about when the changes will be made to Statutory Sick Pay.  We also need to know how salons can quickly access the cash grants from their local authorities.  Depending on how long the coronavirus situation continues, the government will need to look at additional support such as rent holidays, suspension of tax payments, for example, PAYE, VAT or corporation tax and delaying planned rises to the National Living Wage/National Minimum Wage.  Without the necessary support, many hair and beauty businesses will fold, leaving people out of work with no means of supporting themselves for a prolonged period of time.”

Read the NHBF latest blog on what should i do and what rights do my employees have?