When chancellor Rachel Reeves visited Harbour Lights in Falmouth last month, owner Pete Fraser – who runs three fish and chip shops in Cornwall – took the chance to voice the growing pressures on the industry
How did the visit from Rachel Reeves come about?
We got the heads-up about three days before her visit. It was pretty vague initially, just an email from someone asking whether we’d be open to a visit from a Treasury minister. No names were mentioned for security reasons. But they said they’d be in the area and would love to pop in for some fish and chips. Of course, I said yes. But I also asked for one small favour. I wanted five or ten minutes alone with the minister to talk honestly about the financial challenges we’re facing in the fish and chip trade. Thankfully, the answer came back yes.
How did you prepare for that conversation?
I rang Andrew Crook from the NFFF over the weekend. He’s got a broader view of what’s going on across the country, and we shared a few ideas. Mainly, I just wanted to present how tough it is out there at the moment and why something like a drop in VAT could make a real difference.
What points did you raise with the chancellor?
The chancellor seemed keen to talk about how Labour is looking to relax licensing laws to make it easier for small traders and mobile businesses to start up. That might sound great on the surface, but I told her bluntly: we don’t need more competition right now. We’re in survival mode. Fish and chips is embedded in British culture, but it’s under enormous pressure. More shops will close unless something changes.
I turned the conversation to VAT and said how many feel the current system is unfair. There’s an uneven playing field: hot takeaway food like ours is taxed at 20%, but items like supermarket ready meals and Cornish pasties are exempt. Chains like Greggs do really well partly because of this disparity.
Did you suggest a specific rate you’d like to see VAT reduced to?
I didn’t pin her down to a number. I understand she’s inherited a tough economic situation and can’t just give away revenue. But I proposed a fairer system: lower the overall rate, but apply it evenly across hot and cold food. Don’t just keep hammering businesses like ours. Other European countries have figured this out and many apply a lower VAT rate – often around 10% – to hospitality.
How did she respond?
She was receptive, and I definitely felt she was listening. She didn’t dismiss anything I said. I’m sure I forgot to say a few things or could have put things better, so I asked her at the end if I could send a one-pager with bullet points summing it all up. She agreed and even asked her aide to make sure I had the correct email. I sent it but haven’t had a reply yet.
That’s a significant opportunity. How did it feel to be able to make your case directly to the chancellor?
It was great. A real privilege, actually. I’ve been in this business for 25 years, and it’s rare to get a moment like that. That said, I don’t want to make it sound like I’m the only voice. Andrew Crook and the NFFF are doing incredible work lobbying behind the scenes, talking to Treasury ministers. They’re aware of just how many shops are struggling. It’s not just me.
How are your own shops faring in the current climate?
Well, I’m not as bullish as I used to be. I used to think about expanding and growing, but now it’s more about survival. We’ve got three shops in good locations, and I’ve learned how to run them profitably. But everything is tighter and you’ve got to put in twice the effort for half the result.
Is the workforce side of things also a concern?
Yes, massively. Businesses are doing everything they can to reduce workforce size. It’s the opposite of what the government wants – they’re trying to encourage employment, but the policies are pushing us the other way. There are fewer hospitality jobs than ever before, especially in peak summer down here in Cornwall. It’s sad.
Do you think the Autumn Budget will include anything to help?
I’m hopeful but I’m also a realist. I’ve been in this industry for 25 years, long enough to know not to expect too much. People have been trying to change VAT rules for decades. But we did get a taste of what a lower rate can do during the pandemic when it dropped temporarily to 5%. Businesses thrived, they reinvested in their premises, upgraded equipment and hired more staff. When it went back up and then the Ukraine war hit, prices soared – fish, oil, utilities. It stopped being fun. And when it stops being fun, the stress follows you home. It affects everything: your relationships, your mental health.
Other than VAT, are there any changes you think could make a real difference?
Honestly, VAT reform is the big one. Business rates relief is often talked about, but that mostly helps the big chains. Most independent chip shops already have exemptions on their rateable values, so they won’t see much benefit. Unless the government targets support where it’s really needed – at that squeezed middleman – it won’t change anything.
On her visit, what did Rachel Reeves order to eat?
She had Cornish MSC hake and chips with a West Country cider. She was really friendly, she had a good chat with the girls on the takeaway and spoke to a few customers who were already in the queue.
What was her reason for being in Cornwall?
She’d been down at the docks in Falmouth earlier in the day as there’s a big expansion project going on there. She stayed in Cornwall overnight and visited a few other local businesses. Apparently, when they were searching for fish and chip shops in the area, our name came up. That was a nice little honour.
Have you hosted other political figures before?
Yes, Keir Starmer actually popped into Falmouth a couple of years ago. I had five minutes with him too. You can’t show political allegiance in this business, you’ve got to serve everyone. But if there’s a senior politician in town, I’ll always try to grab a few minutes with them. Why not?
Do you think having politicians eat fish and chips helps the cause a little?
Maybe! There’s definitely something about it. It’s the food of the people, isn’t it? You often see the King pulling a pint or politicians eating fish and chips. It’s relatable. And if that helps keep our industry in the spotlight, then I’ll happily serve them!
What’s your final message to the government as we head towards the Autumn Budget
I’m not asking for fish and chips to have its own rate, I’d like to see VAT drop for the whole of hospitality. It works, just look at Europe.
