Budget latest: Labor playing 'silly games', says IFS; On the hunt for resignation from shadow cabinet

We’ve just spoken to Toby Dicker from the Salon Employers Association, who told us the budget was “much, much, much worse than we predicted”.

He had predicted going into the budget that the ‘worst case scenario’ for his business would be a cost of £75,000 due to an increase in employers’ national insurance contributions (NICs), when in reality this would be £127,000.

He explained that hairdressing businesses are particularly affected by the increase in NICs because their wage costs are 60% of turnover – much higher than most businesses.

Overall, he is “stunned” and “shocked” by what Rachel Reeves announced yesterday.

Asked whether he was making representations to the Treasury (HMRC) before the Budget, Mr Dicker said 200 industry people had written a 17-page document on possible measures.

“We’ve been talking to HMRC and to DBT (Department for Business and Trade) for five years, and they’ve promised us things that they haven’t delivered, and that’s forced most of our industry into the gig economy.

“The gig economy has not been affected by this budget,” he said, noting that a delivery company with more than £100 million in profits is not paying NICs, despite paying almost £100,000.

Mr Dicker became emotional and told the government: ‘You have failed to listen to us through successive governments. We tried to tell you, but you didn’t listen.’

The hairdressing industry is now “all set”, he said, explaining that workers will have to move to the gig economy to reduce costs for salons, and that apprentices will no longer be employed.

He begged ministers to sit down with him to discuss the challenges this budget presents, saying: “You have taken all the profits, all the things you would invest, and you have taken my salary. “

He stated that he will “fight as hard as I can,” like the industry, for a better deal from the government.