Fish and Chip shops could be killed off by Labour’s National Insurance rise as owners claim their profits are wiped out

Brad-Lee Navruz, who runs The Nippy Chippy in Stonehouse, Gloucestershire, apologised to customers this week after charging £15 for a large cod and chips.

This represents a significant jump from the previous price of £10.30, with regular portions now costing £12.50.

Some shop owners fear going out of business altogether as they grapple with increased costs of ingredients, energy bills and the recent employer National Insurance hike

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Navruz said he “feels bad” for shocked customers but explained that rising ingredient costs left him with little alternative.

In contrast, Josefina Fernandes, who runs The Big Fish in Stroud, offers a large cod and chips for £12 and has no plans to increase prices despite the challenges.

Fernandes, 76, who still works five long days in her shop, said: “It’s hurting. The prices we have to pay our suppliers now for fish, potatoes and all the other ingredients – in addition to ever-increasing energy costs and everything else – leaves us with very little profit.”

“We’re absorbing most of the increases ourselves and that hits our profits hard.”

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Nearby Simpsons fish and chip shop, described as “above mid-range” by head frier Miranda Haley, is planning to increase prices by around 10 per cent.

Haley revealed the shop makes no money on cod despite selling around 300 pieces weekly saying: “We’ve had to accept that with cod costing what it does now, we can’t make any money from it.”

She added: “Instead we hope to make a bit of profit from the chips and selling a drink with it.”

The crisis is being fuelled by new fishing quotas agreed between the UK, EU and Norway, which have reduced catch allowances for 2025.

This year’s quota for cod has been cut by 20 per cent to 25,028 tonnes. Haddock is capped at 112,400 tonnes, down 5 per cent from 2024.

Officials say these reductions are vital to ensure the long-term sustainability of fish stocks.

Labour’s increase in National Insurance contributions for employers is adding further pressure on chip shop owners.

One shop owner estimated they needed to find another £700 per employee per year to cover the costs.

This year’s quota for cod has been cut by 20 per cent to 25,028 tonnes

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The rate of employer NICs rose from 13.8 per cent to 15 per cent at the beginning of April as the Treasury attempts to raise around £25billion annually.

Customers have mixed reactions to the price increases. James Geidt, a classical singer, said: “The fish here is outstanding and always superbly cooked so I’m happy to spend a little extra for what they offer.”

Others are finding creative solutions. Mother-of-one Vicky now buys only chips from her local shop and cooks supermarket-bought cod at home, saving her family £26.50.

“It’s a shame we have to resort to this,” she said.