Pubs could end up charging £25 for fish and chips due to Reeves’ tax hikes, hospitality boss warns

Pubs have warned they may be forced to charge as much as £25 for fish and chips as the industry faces the prospect of tax hikes.

Hospitality chiefs have urged chancellor Rachel Reeves not to take steps that will hit the sector in her October budget.

Businesses are facing increases to employers’ National Insurance contributions and business rates, which were lowered to offset the impact of Covid-19.

Speaking to BBC Radio 4’s Today programme, Louise Maclean from Signature Pubs said that her profits were “diminishing to a level that on occasion makes you think ‘God, what’s the point?’.”

She voiced her concerns that new employment rules will make it hard to employ flexible staff and warned pubs and restaurants could end up charging £25 for fish and chips.

“It is going to be an absolute quagmire to navigate,” she added.

Every time she opens a newspaper, ministers appear to be “kicking” the industry, leaving her in “utter disbelief”, she said.

In an interview with the BBC, Sir Keir Starmer warned of a “tough” Budget to fix the dire public finances amid growing speculation over which taxes the Chancellor might raise.

Labour’s manifesto had promised not to raise taxes on “working people”, specifying income tax, VAT and national insurance.

However, Sir Keir has declined to rule out employers’ contributions to national insurance.

He said Labour was “very clear in the manifesto that we wouldn’t be increasing tax on working people”.

He added: “It wasn’t just the manifesto, we said it repeatedly in the campaign and we intend to keep the promises that we made in our manifesto.”

However, the Tories have disputed this, claiming that a hike in NI for employers would be in breach of the manifesto.