VAT rise adds to cost pressures on Worcester fish bar

A chip shop owner has said he is struggling to make any money in the face of soaring food and energy bills, alongside a hike in VAT.

Mohammad Sayyab, who runs Worcester's Seacrest Fish Bar, said costs had risen 10% in a week, with more increases due.

VAT for the hospitality industry rose to 20% on Friday after a temporary drop during the pandemic.

The government has also placed a 35% tariff on Russian fish imports after the invasion of Ukraine.

About 40% of fish sold in chip shops in the UK comes Russia, the National Federation of Fish Friers (NFFF) said.

"It is not a pound or 50p, it is £10 or £5 each rise and that is a lot. With fish, it is £10-15 every week, going up," Mr Sayyab said.

His profit margins have dwindled and he said he had been forced to pass on some of the costs to his customers.

"We have to put the price up, but we will not go mad on prices, because we know the customers will not be able to afford it as well," Mr Sayyab said.

The combination of increases is "very worrying", industry body the NFFF has said.

Energy prices, rising before the war, have been pushed even higher and, unlike residential customers, businesses are not protected by the price cap.

Andrew Crook, from the NFFF, said the decision to raise VAT from 12.5% to 20% was "catastrophic" timing for his industry.

"It is a very worrying time, it is the straw that breaks the camel's back," he said.

The Treasury said it had "always been clear" lower VAT rates were a temporary measure and added it had "stood behind the hospitality sector" throughout the pandemic.

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