Well-known Cork barber says VAT increase could massively hurt industry

A BARBER shop owner warned that VAT increase could be the death knell for those struggling to survive in Cork’s hairdressing industry.

Mick Moriarty whose business — The Baldy Barber in Blackpool — turned 86 today, was speaking amid calls for a retention of the 9% VAT rate for hospitality.

The Irish Hairdressing Federation (IHF) expressed strong hopes of avoiding a return to the 2020 rate of 13.5%.

The organisation, which represents around 500 members, has reported a significant decline in demand for its services.

Some of their members have already indicated that costs have increased by around 15% since 2018 to keep up with outgoings.

Former Minister for Finance, Paschal Donohoe had extended the reduced 9% VAT rate from August 2022 until February 28 2023, acknowledging the impact of Covid and increased energy costs.

Salon owners are now campaigning for the rate to be retained amid inflation and as they continue to recover from the effects of the pandemic.

Mr Moriarty stressed that overwhelming competition in the barbering industry has left his own business crippled.

“Twenty years ago, there were 15 barber shops in Cork,” he said. “Now, there are 150 which just shows the kind of pressure we are under.”

He said that barbers need to be more vocal for change to come about.

“A lot of people renting will have to put up their prices to sustain the charges. Very few barbers are willing to speak out,” he said.

“In 1987 2,500 turned out to march to retain the VAT rate at the time. The government backed down and we kept it at 13 and a half percent. It was great to see but it’s different these days. For some reason, a lot of people are afraid to take a stand and fight for what they believe in.”

Meanwhile, the IHF’s Vicky Burke said the rate needed to be reduced if salons in small towns and villages are to be given “a fighting chance to keep their doors open”.

“Salon owners have been through the wringer throughout Covid and unprecedented inflation over the past year — salons are already struggling to stay open,” she said.

“Clients are either looking for cheaper alternatives, such as services offered by those operating in the shadow economy, or due to clients stretching out the length of time between their appointments and visiting salons less frequently.”

Vice-president of the IHF, Lisa Eccles said that energy costs have increased as well as the cost of hair dye and foil — with the latter rising by 25%.

“New employment changes such as sick pay and an increase in the minimum wage has also put pressure on small businesses,” Ms Eccles said.

“Salons are just expected to find the money from thin air.

“I can only speak, obviously, about my own salon and since 2018 I would say my prices have gone up by 15%, and to be honest that’s not even to make profit, that is literally just to try and keep the doors open and try and keep our heads above water. And it’s barely even cutting it.”