UKSA urges spas to support call for lower VAT

The Association is calling on the spa sector to sign an open letter, campaigning for 10 per cent VAT at the next Budget

By Wendy Golledge

28 September 2026

www.spa-uk.org/

The UK Spa Association (UKSA) is urging the spa sector to back an industry-wide open letter, calling for 10 per cent VAT.

The call for VAT reform, initiated by The British Hair Consortium, comes ahead of the forthcoming Budget.

The open letter highlights the impact the current VAT rate is having on employment, apprenticeships, business growth and the future sustainability of the industry.

It calls on the Chancellor to reduce VAT from 20 per cent to 10 per cent for professional beauty, spa and aesthetics, hairdressing and barbering services.

The campaign comes as the UK spa, beauty and hair industries face rising pressures. Employment and energy costs, business rates and operating expenses are all escalating, which continues to affect the sector.

“The UK spa and wellness sector is a cornerstone of the nation’s health, yet our operators are being constrained by an unsustainable tax burden alongside spiralling energy, employment and operating costs. Reducing VAT isn’t just about financial relief; it’s a vital strategic move to unlock business growth, secure the future of our industry and allow us to invest in the wellbeing of our communities.”

Abi Selby

Chair, UK Spa Association

A meaningful difference

The open letter calls on the Chancellor to introduce a 10 per cent VAT rate and to meet the leaders from the spa, beauty and salon industries before Budget decisions are finalised.

“Now is the time for our industry to come together and make sure our voice is heard,” said Rachel Bevan, general manager of the UK Spa Association.

“We know the pressures our industry is facing and we know that rising costs make it increasingly difficult for businesses to invest, grow and plan for the future. VAT reform could make a meaningful difference, which is why the UK Spa Association is proud to support this campaign.

“If you work in the spa industry, this is your opportunity to speak up. The more of us who stand together, the stronger our message will be. This is about creating the right environment for our industry to thrive, not just today, but for the future.”

“This open letter gives our industry the opportunity to speak directly to Government with one clear message: we need a fairer VAT rate for services. The more of us who speak together, the harder it is for Government to ignore us.”

Collette Osborne

Chair, British Hair and Beauty Consortium

Evidence-led intervention

The open letter states that the combined sectors lost one in five employees in 2025 – the largest loss of employment of any occupation in the UK.

Apprenticeship starts have fallen by approximately 84 per cent since 2015. CBI Economics analysis indicates that tax reform could generate approximately £766m in additional VAT receipts by 2030, protecting employment and business growth.

Collette Osborne, chair of the British Hair and Beauty Consortium and founder of Salon Owners United, added: “The UK spa industry has such a powerful voice and we need to use it collectively. This is about protecting the future of our industry, supporting businesses, encouraging growth and recognising the essential contribution that spa, beauty and wellness professionals make.

To read the open letter and add your support, click HERE.

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