The beauty industry is slamming ‘misguided’ plans for tax increases ahead of budget

The beauty industry is the latest to sound the alarm over the likely tax hikes in the budget.

Lobby group British Beauty Council, whose clients include major brands from Sephora to Estee Lauder, has urged the Chancellor to reconsider “wildly misguided” proposals.

The group, whose ambassadors are Rita Ora (pictured) and Kate Moss, pleaded with Rachel Reeves not to increase tax on employers’ national insurance contributions.

Millie Kendall, boss of the British Beauty Council, said this would ‘most likely prevent wage increases and deter people from hiring more staff, stifling growth’.

Possible tax hikes have spooked businesses, which say they would struggle to hire and expand, adding another cost burden.

Kendall urged Reeves not to scrap the entrepreneur exemption, which allows founders to pay less capital gains tax when selling their businesses.

“Entrepreneurs are the lifeblood of our economy,” she said. And removing this relief ‘goes against the chancellor’s main motive: stimulating growth’.

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