Home Money Beauty industry slams ‘wrong’ tax rise plans ahead of budget

Beauty industry slams ‘wrong’ tax rise plans ahead of budget

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British Beauty Council urges Rachel Reeves not to increase taxes on employers' National Insurance contributions

British Beauty Council urges Rachel Reeves not to increase taxes on employers’ National Insurance contributions

The beauty industry is the latest to sound the alarm over potential tax rises in the Budget.

Lobby group British Beauty Council, whose backers include big brands from Sephora to Estee Lauder, has urged the Chancellor to think again about “wildly misguided” proposals.

The group, whose ambassadors include Rita Ora (pictured) and Kate Moss, implored Rachel Reeves not to increase taxes on employers’ National Insurance contributions.

British Beauty Council chief Millie Kendall said this would “likely prevent pay rises and deter people from hiring more staff, thus stifling growth”.

Possible tax increases have spooked businesses, which say they would struggle to hire staff and expand with another cost headache.

Kendall urged Reeves not to eliminate entrepreneur relief, which allows founders to pay less capital gains taxes when selling their companies.

“Entrepreneurs are the soul of our economy,” he said. And removing this relief “goes against the Chancellor’s main motive: to boost growth.”

In a letter to Reeves seen by The Mail, the group said beauty contributed £27.2bn to the economy last year, according to Oxford Economics.

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