'Disappointing' budget leaves salons with higher costs 

Owner of Zinc Hair and Beauty in Kilmainham in Dublin, Lisa Eccles said the budget was “hammering” at small businesses

Lisa Eccles said due to her rising costs and not passing on price increases, last year her company made a loss of €11,000. This year, she put prices up and, as such, would be hoping to 'break even'. Picture: Moya Nolan 

Hairdressers and salons will have to increase prices from next year as Budget 2024 leaves them with additional costs and little in the way of firm supports, business owner Lisa Eccles has said.

As part of the budget, a number of measures were announced to help workers, such as an increase of €1.40 to the minimum wage as well as tax cuts. Small businesses were left with a promise of a €250m package which will see a refund in their commercial up to maximum of €10,000 — however, the timeline for the refund has yet to be finalised.

Owner of Zinc Hair and Beauty in Kilmainham in Dublin, Ms Eccles said the budget was “hammering” at small businesses again given the increase to the minimum wage as well as the various other costs they are expected to absorb — such as additional sick pay days.

“It is a very disappointing budget,” she said.

Ms Eccles said due to her rising costs and not passing on price increases, last year her company made a loss of €11,000. This year, she put prices up and, as such, would be hoping to “break even”.

“We’ll have no choice but yet again to pass those extra costs onto the consumer, which means another increase in prices,” she said, adding that prices already went up in September after the Vat rate went back up.

Ms Eccles had been hoping the Government might bring the Vat rate back down so it could be passed on to customers, but that didn’t happen. Ms Eccles’ business opened in 2009 and employs 18 people.

She said that between covid and the cost-of-living crisis, the last three years have been particularly difficult.

“My average energy bill for a month was anything from €250 to €300, depending on the time of the year,” she said.

From May 19 to June 15, my last bill was €576. The bill for July was €675, the bill in August was €1,100.

Ms Eccles said costs for salon essentials such as colours increased by between 5% and 15% last year. She said she applied several times for the Government’s Temporary Business Energy Support Scheme, but they’ve yet to receive a payment from it.

On the increase to the minimum wage, Ms Eccles said it will soon be reflected in everyone’s wage regardless of whether they were on a higher rate or not.

“Once minimum wage goes up, every other member of your team is going to come to you and look for a pay rise because that is generally what it does — minimum wage goes up and then everyone else says: ‘I want to see my wages go up as well’.”

Ms Eccles welcomed the announcement around the commercial rates refund, but said it would amount to about €3,500 to her business. However, she estimates the increase in the minimum wage will add €14,000 to her wage bill.

In regards to the temporary supports, Ms Eccles said she would like to see money being made available to salons that provide training outside of the National Apprenticeship Scheme, as a lot of salons are “battling each other” for staff.