Ynys Môn MP calls for VAT cut to protect salon jobs and apprenticeships
Appeal to Chancellor aims to protect jobs and enhance skills in Ynys Môn
Ynys Môn MP Llinos Medi is urging the Chancellor to consider cutting VAT for hair and beauty businesses, warning the current system could make it harder for salons to employ staff and train young people.
She’s written to the Chancellor ahead of the 2026 Budget, calling for a reduced 10 per cent VAT rate on labour-intensive salon services.
The British Hair Consortium also supports the proposal, arguing that the current VAT system disproportionately impacts businesses where wages are the bulk of operating costs.
In her letter, Llinos Medi inquired about the Treasury's assessment of the potential benefits of a 10% VAT rate and its impact on employment and industry growth.
Medi stated, “Hairdressers and beauty salons are at the heart of communities across Ynys Môn.
They provide skilled jobs, create opportunities for young people through apprenticeships, and play an important role in the vitality of our high streets.”
She noted that constituents have expressed concerns about VAT pressures, which pose barriers to growth and investment in training.
Medi advocates for a tax system that supports secure employment and the development of skilled workers.
She added that local salons offer crucial first jobs and training, which enhances community employment and skills development throughout Wales and the broader UK.
“Local salons tell me that the current system increasingly pushes businesses towards self-employed models simply to remain viable.
While genuine self-employment has an important place in the economy, we should be concerned when tax pressures encourage businesses away from direct employment,” she said.
Several European countries apply reduced VAT rates to labour-intensive sectors like hairdressing.
Medi encourages the UK Government to explore similar measures to protect jobs, apprenticeships, and high streets, while maintaining a sustainable tax base.