25 February 2025

Hair and Beauty Sector Faces Critical Turning Point as Businesses Plan Price Hikes and Job Cuts

The National Hair & Beauty Federation (NHBF) today released findings from its latest State of the Industry Survey, revealing that an unprecedented 78% of hair and beauty businesses plan to increase their prices in the next three months - the highest level recorded since the survey began.

The quarterly survey of sector businesses across the UK paints a picture of an industry at a crossroads, with rising operational costs post Autumn Budget forcing difficult decisions about staffing, apprenticeships, and business models.

Key findings include:

  • 52% of businesses plan to implement price increases of 5-10%.
  • 31% of businesses reported a decrease in their workforce over the last quarter.
  • 59% expect to reduce apprenticeship intake following the Autumn Budget.
  • 26% of businesses are now planning to downsize or hand over their business.

Read the NHBF’s Full Press Release Here

Look out for the NHBF’s ‘Straightening out the costs’ report tomorrow with full analysis of the Autumn Budget impact.

 

Inflation jumps to three per cent in January

The Consumer Prices Index (CPI) rate of inflation increased by three per cent in the 12 months leading up to January 2025, according to a report from the Office for National Statistics. This surge was higher than economists had predicted and poses a challenge for small business owners, many of whom are already feeling the strain on their profit margins. The rise in inflation was primarily driven by increased prices for transportation, food, and beverages.

 

Free direct marketing advice generator launched

The Information Commissioner’s Office (ICO) has launched a free online tool to assist organisations in ensuring that their direct marketing practices comply with UK law. This tool provides small businesses with tailored advice on how to utilise email, text messages, direct mail, social media, telemarketing, and other marketing communications in a compliant manner. More information is available on the ICO website.