Cost of living crisis: Morecambe hairdresser fears small salons will go to wall this winter

A Morecambe hairdresser has spoken out about how the cost of living crisis, Brexit and Covid have affected his business.
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Owner of Stephen James hair salon on Ashton Road, Morecambe, Stephen Warburton, said: “For us the bottom line is because we have less numbers of staff than pre-Covid.

"Brexit and Covid have both created a staff shortage, there is a massive shortage of hairdressers and beauticians.

“It’s very difficult to recruit now.

Stephen Warburton of Stephen James hair salon in Morecambe.Stephen Warburton of Stephen James hair salon in Morecambe.
Stephen Warburton of Stephen James hair salon in Morecambe.
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"Clients are extending the times between appointments to save money and are asking how much services are before they book.

"Clients are using the prepayment system so they can budget more effectively for their appointments.

"These are all signs things are getting a bit tougher.

"There is no such thing as an energy price cap for businesses, the businesses don’t have a cap.

Stephen Warburton of Stephen James hair salon in Morecambe.Stephen Warburton of Stephen James hair salon in Morecambe.
Stephen Warburton of Stephen James hair salon in Morecambe.

"The biggest burden is 20% VAT on everything and that is criminal, everything is 20% payable on that money.

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“VAT is a huge burden on the service industry. That is my biggest bill, they should reduce the service industry VAT limit.

"A reduction in VAT would reduce our outgoings significantly then allowing us to invest in the business more effectively.

"Sadly, a lot of small salons will go to the wall this winter.

"We are celebrating 39 years of the salon opening on November 21 and we have worked really hard, we have a really good team. Everyone plays their part.”

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Chair of Morecambe BID, Ruth Wilkinson, said: “"Our BID members are feeling the cost of living and increased prices in products, goods and services; with increasing regularity, we are seeing local businesses making tough decisions regarding their abilities to continue to trade in the current conditions.

"As an organisation, we have continued to offer advice, support and guidance, as well as several grants, to support our members in introducing energy-saving changes within their businesses. But we are very keen to hear what local and national governments will do to help our business communities; with many local and independent businesses absolutely central to our local economy and community, we would ask the government to urgently address this issue.”