Business Rates for Personal Care Sector Cut by 50%

The professional beauty industry in England will all receive a 50% cut in business rates over the next year; this will extend and include beauty salons, clinics, hair salons and spas.

To support businesses which have been badly hit by the Covid-19 pandemic, Chancellor Rishi Sunak has announced a temporary 50% cut in their businesses rates, up to a maximum of £110,000.

Business rates are taxes designed to help fund services in your local authority. The government charges business rates on properties like offices, shops, pubs, and warehouses – most non-domestic properties will attract business rates.

In addition, he has scrapped 2022's planned annual increase in rates for all firms for the second year in a row.

Speaking at the House of Commons, Sunak said the move will “make the business rates system fairer and timelier with more frequent revaluations every three years”.

Victoria Brownlie, chief policy officer of non-profit British beauty industry representative body The British Beauty Council (BBC), commented on the announcement.

“The BBC has been strongly committed to lobbying for changes to business rates and so we’re delighted that the personal care sector will enjoy a 50 per cent business rates discount next year.

“It’s welcoming to hear that from 2023, every single business will be able to make improvements to their premises without facing higher business rates bills for 12 months after they’re made.

“Industry data indicates that higher business rates deter around half of beauty business owners from improving their properties. This delay will allow them to recoup the investment in improvements before seeing any increase in their business rates.

"It’s been a challenging time for the personal care sector – with more than 7,000 businesses closing since the pandemic started – but these measures announced by the Chancellor today will help our businesses recover and think towards the future."