The owner of an East Lancashire fish and chip business has warned that hard times could be ahead for his industry, as VAT is set to increase in April.

Currently, VAT levels are set at 12.5 per cent to help the recovery of fragile hospitality and leisure firms.

However, there are plans to increase this to 20 per cent in April.

Langho's Simon Mathews, who owns Country Fried mobile fish and chip business, says the VAT increase could “cripple” his business and is urging the government to reconsider the price hike.

Simon said: “It could be very detrimental to the business – and could cripple it.  

“Prices will have to go up and we might not get as many customers.”

As well as the VAT rise, Simon is also concerned about the increase in living costs and energy bills – something which will impact both his business and customers who may be forced to tighten their purse strings.

Simon, who started the business during the pandemic, said: “Eating out is a luxury and people might not to be able to afford such luxuries if prices keep climbing.

“While I am not affected as much by increasing energy bills as a mobile business, I have noticed that my gas has gone up. I know that other people in the industry have been impacted."

Speaking to a national paper, the National Federation of Fish Friers, which Simon trained at, he warned that the increase in VAT could lead to 1 in 3 fish and chip shops disappearing from the high street.

A spokesperson said: “It really is a serious threat for the industry and we need government support. 

“It is not just our industry but we feel the squeeze as our margin is very tight. The whole of hospitality is calling for VAT to remain at 12.5%.” 

Simon says the public shouldn’t allow a VAT price increase to pose a threat to Britain’s signature dish.

Simon said: “I lost my job during Covid and now this business is another threat to my new own.

“People might not be able to afford fish and chips, which is essentially the country’s national dish.”

A government petition is currently in circulation which calls for a permanent 12.5 per cent cap on VAT tax. It currently stands at 4,967 signatures and needs 10,000 before it can be taken to parliament.