Revealed: the beauty industry’s key asks ahead of the general election

Tax and spend

• Tax reform, including a reassessment of VAT policy, focusing on tapering the VAT threshold cliff-edge.
• A review of the business rates system to create a more level playing field between high-street and e-commerce stores.
• An increase in the Employment Allowance for SMEs (small and medium-sized enterprises) to reward businesses that grow their workforce.
• The introduction of an internationally competitive, tax-free shopping scheme for international visitors.
• Tax-deductible business training in new areas of business, such as AI (artificial intelligence) and sustainability.
• A commitment to review classifying SPF30+ as an ‘essential’ rather than ‘cosmetic’ item.

Trade and regulation

• Targeted investment incentives that prioritise business reshoring and increase UK manufacturing and innovation, particularly in relation to sustainability.
• A closer and more positive working relationship with the EU in respect of trade and export policy.
• A commitment to maintain a sector-specific, risk-based approach to reform relating to UK cosmetics regulation.
• A pledge to proceed with licensing regulation as secondary regulation under the Health & Care Act 2022 in the aesthetics sector.

Education and growth

• An updated skills and apprenticeship education system, managed under the remit of the Department for Business and Trade to ensure the qualifications are fit-for-purpose.
• Greater flexibility regarding the use of apprenticeship levy funds to build on and develop skills in areas large and small businesses need.
• The reintroduction of Child Benefit for families of under 18s who undertake apprenticeships.
• A focus on resources to ensure improved access to funding for typically disadvantaged groups, such as women and ethnic minorities, and greater representation at all levels of business and enterprise.

ESG (environmental, social and governance)

• Support and incentives for companies to implement carbon reducing, circular, nature positive and environmentally sustainable business practices.
• An implementation strategy in relation to extended producer responsibility (EPR) regulation that works with industry to ensure a common-sense approach to execution, for example utilising digital labelling.

Victoria Brownlie MBE, chief policy and sustainability officer at the British Beauty Council, comments:

“We are continuing to work cross-party to advocate on behalf of the industry. We are maintaining and building new relationships with policymakers to push for action in areas where the sector will benefit most.”

www.britishbeautycouncil.com