Hellen Ward, co-founder of the Richard Ward beauty salon chain, has revealed that her salons are accumulating £1,000 a day in debt while closed due to Covid restrictions. She is part of the Save our Salons campaign, which is urging the government to cut VAT to 5% for the hair and beauty sector, matching the reduction already given to restaurants and bars.
A survey by the campaign group indicates that 56% of salon owners are considering closing permanently, and nearly four in five expect to recruit no apprentices this year. The group warns that closures would disproportionately affect women, who make up almost 90% of the sector's workforce. The UK has 45,000 salons employing nearly 300,000 people.
Hairdressers and nail salons are set to reopen on 12 April, but many businesses have accumulated significant debts during the prolonged closure. Campaigners note that salons typically operate on profit margins of just 2-5%. Without financial relief, some may find it preferable to close their doors.
Ms Ward told the BBC that while the furlough scheme has been helpful, it is not free, as employers must still pay national insurance contributions. Many beauty companies have also been paying full rent during lockdown despite having little or no income, as most sales come from treatments rather than products.
Gina Conway, who owns three hair and beauty salons in London, said her businesses have been closed for 238 days since the first lockdown. She continues to pay rent, insurance and utility bills, with mixed support from landlords. "I have a successful business and I plan on growing, I'm just holding my breath on what the government can do to help," she said.
