The UK's leading voice for the Fish and Chips industry is urging the Chancellor to reform VAT in the spring budget next week.
Inflation and high interest rates, plus supply issues due to the war in Ukraine are adding pressure to the demand on chippies to offer one of the nation’s favourite dishes.
The Federation of Fish Friers says reduced rates, and reform of the system, would ease the burden on British businesses.
VAT, an added tax on goods purchased from most businesses, is currently set at 20 per cent, although the Treasury had previously slashed rates during the pandemic.
VAT, an added tax on goods purchased from most businesses, is currently set at 20 per cent
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Andrew Crook, President of the National Federation of Fish Friers said: “We have seen some shops close. For the small ones it is very difficult.”
“All of hospitality is calling for reform of VAT and with the budget coming up we’re hoping they’ve got their ears open and are willing to act on it.
“VAT came in 40 years ago and the world has changed. The system just doesn’t work and at 20 per cent it penalises the operators that are doing everything right.”
The Federation has been standing up for local chippies on both the national and international stage since 1913.
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Matthew and Danielle Etches, Owners of Marina Fish and Chips
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There are approximately 10,500 chip shops in the UK, employing 100,000 people directly and contributing £2billion to the economy.
Danielle Etches, owner of Marina Fish and Chips in Chapel st Leonards, Lincolnshire said: “We want to provide the best quality that we can. The produce has prices added on so it’s keeping the balance. It’s keeping that good value for everybody, but also we are still a business so we’re trying to keep a little bit of profit as well so we can carry on.”
Andrew said: “Government in the past has seen small businesses as expendable, but when you’re talking about something with such heritage it’s the people with passion that’s so important. If you lose these people, you lose something special.”
“Fish and chips are still popular but it’s the profit margin that is affected. It’s leaving shop owners with very little at the end of the month. When the VAT bill comes in at the end of the quarter some shops are having to put their own money in just to stay afloat which can’t be right.”
Andrew Crook, President of National Federation of Fish Friers
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The National Federation of Fish Friers is celebrating the best in the industry at the Fish and Chip Awards despite tough times.
An HM Treasury spokesperson said: “Our decisive action helped to more than halve inflation last year, which is protecting businesses around the country from higher costs that they would otherwise have faced.
“We’ve also recently extended measures to support hospitality, including a 75 per cent discount on business rates and freezing the small business multiplier for a fourth consecutive year.”
Jeremy Hunt will deliver his budget to MPs at the House of Commons at approximately 12.30pm on March 6.