Personal Care Services: VAT

Summary

To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of reducing VAT on labour costs to 10% for the hair and beauty sector.

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Timeline

1. 3 November 2025

   Written question

   To ask the Chancellor of the Exchequer, what assessment her Department has made of the potential merits of reducing VAT on labour costs to 10% for the hair and beauty sector.

   Source: Commons

2. 12 November 2025

   Answer

   VAT is a broad-based tax on consumption, and the 20 per cent standard rate applies to most goods and services. VAT is the UK’s third largest tax, forecast to raise £180 billion in 2025/26. Tax breaks reduce the revenue available for vital public services ...

   Source: Written answer

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• · Treasury · Answering body

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