Fish and Chip Sector

Tom Gordon Excerpts

Tuesday 3rd February 2026 Commons Chamber

[John Cooper]

The hon. Lady makes an important point. We should of course support businesses of all kinds, and pedestrianisation can be a double-edged sword. One of the difficulties is the weather in this country, and there is nothing better than pulling up right outside the shop that you want to go to, so decisions have to be balanced.

The reduction in the North sea cod quota for 2025 reduced supply, and, of course, increased prices. I am more a haddock man myself, but cod is one of the top five imported and consumed species in the UK. Labour’s failed “mackerel for missiles” deal gave the EU further rights in our waters, but did not give us access to Europe’s multibillion-pound Security Action for Europe defence fund. The EU now takes seven times more fish, by value, from our waters than we take from its waters.

Fish and chip shops have also faced challenges from increased electricity prices due to the use of energy-intensive cooking appliances. Increased energy costs have also contributed to higher potato prices, with more to come as the carbon border adjustment mechanism is effectively a fertiliser tax, adding perhaps an extra £100 per tonne. Even changes to reliefs on double-cab pick-ups—the farmers’ workhorse—have increased potato prices.

Let us hear no nonsense about the people behind the counter being low-skilled; today’s fish-frier could be tomorrow’s FTSE 100 chief executive officer, or the founder of a €1 billion unicorn start-up. They work with cash and high-value stock, and, crucially, learn communication skills through dealing with the public.

Increases to the minimum wage, which is paid not by the Government—although Labour likes to pretend that it is—but by hard-pressed businesses, are also an issue. Add the increase in employer national insurance, which puts a bounty of about £900 on the head of each employee: no wonder youth unemployment is rising.

[Tom Gordon (Harrogate and Knaresborough) (LD)]

The hon. Gentleman is outlining some of the economic challenges that the sector is facing. One of my constituents is heavily involved in the National Federation of Fish Friers. He told me that he often feels that the Government are very good at listening to UK hospitality and other big sectors, but they do not necessarily understand the specific local issues of this sector. Does he agree that we would welcome more communication and better collaboration between them?

[John Cooper]

The hon. Member makes a very good point. Many industries are not actually treated as an industry. For example, agriculture is treated as a series of small individual businesses, and its totality is not taken into account. That is a very fair point.

The truth is that Labour’s Employment Rights Act 2025 is about the clipboard class—the trade union apparatchiks —and not really about actual hard-working people. What is the point of workers’ rights if that all-important first job eludes people?

Will the fish supper go the way of the red telephone box—much loved, but a relic of the past? Will the Labour party’s indifference turn a British staple into a luxury for the elite? Whether you call it a fish supper, a one-and-one, or just regular fish and chips, this Government risk frittering away a classic.

--- Later in debate ---

[Dame Angela Eagle]

My hon. Friend is unique in England because she has the Kirkella deep sea trawler, which she has just mentioned. It can be out trawling and processing for months, and it brings back absolutely processed products. There are some issues with where the Kirkella can fish, given what is happening with fish supplies. I am happy to talk to her about this matter, and I hope to visit her constituency at some stage so that I can have a look at that incredible vessel.

We are supporting the UK fleet to ensure that it has access to opportunities to catch cod and haddock. They are migrating north, which is one of the problems, as is the fact that they have been overfished. In 2026, the Government secured approximately £115 million-worth of fishing opportunities for these stocks. We are also taking steps to restore stocks to sustainable levels, so that we can continue harvesting them over the long term. For example, we have recently agreed measures such as seasonal closures with the EU and Norway to protect Northern Shelf cod, which is in a particularly parlous state.

However, fish and chip shops are particularly reliant on imports of fish, as the hon. Member for Dumfries and Galloway said. Maintaining sustainable stocks of white fish in UK waters means that we have to import large volumes of white fish to meet demand. Relationships with trading partners such as Norway and Iceland, where these stocks can be fished, are therefore critical. Industries used to depend heavily on Russian frozen-at-sea fillets, as the hon. Gentleman mentioned, but costs have risen sharply following the war in Ukraine, because businesses have had to find alternative supplies to stay competitive. We are supporting the sector to seek alternative species and sources of fish in order to move away from any remaining Russian-caught fish in the supply chain, and we are working with the National Federation of Fish Friers and the Cornish Fish Producers’ Organisation to reintroduce British-caught rock salmon to the menu.

Of course, I do not need to tell you, Madam Deputy Speaker, that you cannot have a fish and chip supper without potatoes. From our seed and ware potato farms to our fresh and processing sectors, potatoes continue to play an important role in UK farming and food production. I was pleased to see that the Scottish planted area rose for the second year in a row, despite the challenges of the weather and the global disruptions faced by the whole arable community this year. The Government remain committed to working with the farming sector to deliver stability, confidence and growth. The Secretary of State set out at the Oxford farming conference that the new sustainable farming incentive offer for 2026 will be more focused, more transparent and fairer so that more people can benefit.

We continue to invest in our farming sectors. The farming collaboration fund will provide up to £30 million over the next three years, delivering a new approach to farm collaboration and advice, and will back existing and new farmer groups, link them with expert support and help to create strong partnerships that drive growth and deliver environmental outcomes. We are putting partnership with the sector on a firmer footing. Farmers and food businesses will have a stronger voice at the heart of government.

A new farming and food partnership board, chaired by the Secretary of State and me, will drive growth, productivity and long-term profitability. It will remove barriers to investment and improve how the supply chain works, complementing our work to develop a 25-year farming road map—a single long-term plan to bring together regulation, innovation, skills investment and environmental recovery. I certainly hope that we can make our farming sector as profitable and nimble as possible.

The hon. Gentleman mentioned cooking oil, another important aspect of the production of fish and chip suppers. The price and supply of cooking oil is important. As he pointed out, Ukraine is a major supplier of sunflower oil, but supply chains were severely disrupted by the Russian invasion of Ukraine. As a result, the UK suspended tariffs on sunflower oil imports from 1 January 2023. Last year, we extended the tariff suspension until 31 December 2026, so that importers will continue to have tariff-free access to sunflower oil. We are currently seeking views on whether the suspension should be extended for another two years. Clearly, anyone listening to the debate, be they in the fish and chip sector or elsewhere, should get in touch with us if they have a view about that important issue.

[Tom Gordon]

I will not make any fish puns; it is not my plaice to do so. We have fantastic fish-and-chipperies in Harrogate and Knaresborough, including Oatlands Mount. Local chippy owners tell me that a cut in VAT for hospitality and restaurants would deliver a meaningful boost for them. Will the Minister pass that on to her Treasury colleagues?

[Dame Angela Eagle]

I will skate over the hon. Member’s attempt at a fish pun. I am happy to pass on his comments, which are not a matter for DEFRA, as he will know. As an ex-Treasury Minister, however, I can tell him that VAT is a large source of revenue, and fiddling around to make the system more complex is not often the best way of achieving an aim, but it is something that the Lib Dems do with rather a lot of things. His proposal would give away the simplicity of a sales tax, but I am happy to pass it on.

We recognise that small hospitality businesses, including fish and chip shops, are under real pressure, which is why we have started to reform the business rates system to better support the high street. The Government are producing a new permanently lower tax for eligible retail, hospitality and leisure properties, including fish and chip shops. As we announced in the Budget, those new tax rates are worth nearly £1 billion a year in forgone tax revenue for the Treasury, and will benefit 75,000 properties. Fish and chip shops benefit from a £4.3 billion support package, protecting businesses from steep bill increases. Meanwhile, the smallest businesses will be protected by increases in the employment allowance from the effective national insurance contribution changes. Later this year, we will bring forward a new high streets strategy to reinvigorate our communities, and we will work with businesses and representative bodies to pull it together. That cross-Government strategy will consider what more we can do to support our high streets.

The hon. Member for Dumfries and Galloway spoke about the minimum wage. The Government accepted in full the Low Pay Commission’s recommendations on the minimum wage, to support the lowest-paid workers. As he knows, although that represents a cost for business, there is a balance here in terms of what the lowest-paid workers can get in exchange for their labour. When they get reasonable pay, they put that money into the local economy, so there is a balance—it is not all on one side. I am sure that he would not want the fish and chip sector to rely on very low wages in order to sustain itself. The balance that the Government have decided to strike is to accept the Low Pay Commission’s independently made recommendations on national minimum wage levels in full.

We recognise that the sector is under pressure as a result of energy prices and are taking action to support it, such as through the permanent cut to business rates for hospitality announced in the recent Budget. The Government are concerned about the challenges that hospitality businesses can face in securing appropriate, fair and competitively priced energy contracts. To address that, the Government and Ofgem work closely together to identify and implement policy changes that can improve energy costs in the non-domestic market. Two years ago, Ofgem concluded an extensive non-domestic market review. Interventions to support businesses since that have included expanding the overarching standards of conduct for suppliers to all non-domestic customers, clearer rules on deemed rates and required standards for managing changes of occupancy.

The Government have also recently announced a decision to directly regulate energy brokers and other third-party intermediaries where there is some evidence of abuse. Although third-party intermediaries can support businesses to secure more tailored and better value energy contracts, some rogue brokers exploit customers through excessive commissions or predatory sales tactics, which could prevent businesses from accessing competitive energy prices. Regulation will help to ensure that businesses can trust that brokers are acting in their best interests. If parliamentary time allows, the Government are working to have Ofgem ready to implement regulation in this area in the second half of 2027.

In addition to new regulation, the Government have published a consultation with proposals to strengthen the powers of the Energy Ombudsman to ensure that consumers receive fairer and faster redress when things go wrong. Both those measures will improve competition in the energy market and ensure that non-domestic customers, such as those heating sunflower oil to fry chips in, are able to access free dispute resolution support.

More than 600 hospitality small and medium-sized enterprises across England will receive free energy usage and carbon reduction assessments, and advice and guidance to help them cut carbon, cut costs and support increased productivity and growth. That project is expected to save the businesses an average of £5,000 a year, and it is already identifying key behavioural changes that can have a significant impact on energy bills. I hope the fish and chip sector can be made aware of that and exploit it. Fish and chip shops, along with all small and medium-sized enterprises, can access advice on reducing their energy bills and the business benefits of decarbonisation through the UK Business Climate Hub and the business growth service.

Fish and chip shops may be small in size, but they embody something much bigger: the value of work, community and pride in British produce. While the last Government looked the other way as costs piled up, we are taking responsibility. We are backing the fishers and farmers who supply this great British staple, and we are backing the traders who serve it to millions. This Government will always be on the side of the workers who keep our plates full and keep the high streets alive. With the right support, these businesses can thrive, and this iconic part of our national life will be there for generations of Friday night fish and chip suppers in the future.

Question put and agreed to.