A beauty salon owner has said the 49p increase in the National Living Wage will cost her business more than £20,000 a year. Allison Hudson, 60, runs Faces beauty salon in Colchester, Essex, with her husband Wayne, 68. The couple employ 13 members of staff.
Rise from April 2027
The National Living Wage is set to rise from £12.71 to £13.20 an hour for workers aged 21 and over from April 2027. Allison said the increase will add around £1,700 a month to the salon's running costs, which works out at £20,400 over the course of a year.
Despite the Chancellor announcing business rates relief for thousands of smaller firms, the couple said their salon will not qualify. Speaking to The Sun, Allison said: "We are bitterly disappointed. There was nothing beneficial for us. We worked out that about 57p of every pound we take goes to the Government in some form of tax."
Financial difficulties
The business owner also revealed that some months are so difficult financially that she and her husband cannot afford to pay themselves. In those months, they live on her husband's state pension.
Allison had hoped the Budget would offer some relief to businesses like hers, particularly given the rising costs of running a salon. "We naively thought the Chancellor would help businesses like ours, but we won't even qualify for the £100 cash payment for energy at our home," she said.
Budget announcement
The Chancellor announced the 3.9% National Living Wage increase as part of his Budget on Wednesday, October 28. Around 2.3 million workers are expected to benefit from the rise, with the Government estimating that a full-time worker on the National Living Wage could earn an extra £910 a year before tax.
Mr Healey also announced plans to remove business rates for around 70,000 small firms by raising the relief threshold. However, the changes have raised concerns among business owners who say they are already struggling with wages, taxes and other costs. For Allison and Wayne, the worry now is finding another £20,400 a year to keep their salon running.
