One of the new Government’s most defining missions is to kickstart economic growth – an exciting prospect for the 5.5million SME’s in the UK. But what does this mean for the beauty industry?
Considering the beauty industry’s valuable contribution to the UK economy, it’s no surprise to hear the associations quickly call on the government to work with them on future sector strategies, to secure growth and enhance the competitiveness of the UK industry.
The Cosmetic, Toiletry and Perfumery Association (CTPA) director-general Dr Emma Meredith shared her views, “The CTPA welcomes the new government’s plans to have sector strategies as part of an overall industrial strategy and requests that, as part of this, the UK government develops a dedicated strategy for the cosmetics, personal care and beauty industry”.
Victoria Brownlie MBE, chief policy and sustainability officer at the British Beauty Council (BBCo), says, “As leaders in legislative change, the BBCo is looking forward to collaborating with policy makers, civil servants and industry representatives to support growth, influence and resilience of all sectors.”
Lesley Blair MBE, CEO of BABTAC and the Confederation of International Beauty Therapy and Cosmetology (CIBTAC), comments, “We will ensure we offer our support to the incoming Labour government to assist them in delivering on their manifesto promises – especially those identified as being beneficial to our industry and members – as well as advising them on additional important matters affecting our sector directly.”
Labour’s plans for economic growth focus on small business growth and stability which could, in time, see significant change for the beauty industry. Noteworthy pledges include:
Cap corporation tax at the current level of 25% and retain the annual investment allowance for small businesses.
Reform of the British Business Bank, including a stronger mandate to support growth in the regions and nations, to make it easier for small and medium sized enterprises to access capital.
Publish a roadmap for business taxation to allow businesses to plan investments with confidence.
Plans to introduce a growth and skills levy, to replace the apprenticeships levy.
Create publicly owned company, Great British Energy, designed to tackle the impact of soaring energy prices on homes and businesses and put in place tougher regulation for existing energy companies.
In his first speech as Prime Minister, Sir Keir Starmer said his party will 'rebuild the infrastructure of opportunity, brick by brick”. However, speaking after the King’s speech, Starmer also confirmed that there would be “no quick fix”. Not such great news when salons are closing their doors across the UK and only last week one of the UK's biggest cosmetic surgery providers SK:N Group collapsed. Sadly, rising costs and global instability will continue to affect the beauty sector so it’s important that business owners are aware of options available to help them not just get by, but thrive.
Across all sectors SME’s are struggling, with many unaware that business finance can be a life line. According to a recent survey, 33% of SME’s will seek out finance in the next year to survive*. Business loans, invoice finance lines and equipment finance are just some of the ways businesses can access funding to help manage cash flow and invest in future growth projects.
A finance broker like Activate is a one stop shop for all your business finance needs. We have access to a wide panel of lenders, including high street banks and more niche funders, ensuring there is an affordable solution for every type of business and circumstance. We are highly experienced in getting to the heart of your business and understanding your most pressing requirements as well as looking at future proofing to sustain growth.
If you want to discuss your business and any funding requirements, please get in touch with the team at Activate Business Finance today. You will have a dedicated Account Manager who will be your contact throughout and you can call any time to discuss your application.
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