The owner of a popular fish and chip shop in South London has called on the government to address rising costs for small businesses ahead of the upcoming Budget. Harry Niazi, proprietor of Olley’s Fish & Chips Experience in Herne Hill, highlighted the increasing financial pressures faced by suppliers and small enterprises, warning that these challenges could lead to higher consumer prices or reduced investment in workforce development.

Niazi noted that one of his suppliers has experienced a weekly fuel bill increase of £2,000, underscoring the difficulty in managing escalating operational costs. “Suppliers and small businesses can absorb only so much before customers face higher prices or businesses have less money for recruitment, training and investment,” he said.

The Budget, scheduled for later this week, is expected to include a 3.9% rise in the adult minimum wage, raising the hourly rate to £13.20 from April, up from the current £12.71. The minimum wage for 18- to 20-year-olds is also set to increase to approximately £11.27 per hour. However, Chancellor John Healey has decided to abandon Labour’s previous commitment to equalize youth pay rates with those of older employees, citing concerns that such a move could lead to job losses for younger workers.

With nearly one million young people currently not in education, employment, or training, some employers are warning that additional wage hikes could further limit job opportunities for this demographic.

Andrew Crook, president of the National Federation of Fish Friers, which represents the fish and chip sector, emphasized the need for the government to implement measures that offset the impact of rising wages, such as a reduction in VAT, to support employment levels. “High input costs and a heavy tax burden are taking their toll,” Crook said. While acknowledging the importance of fair pay for staff who often work under demanding conditions, he stressed the industry’s ongoing struggles amid rising costs.

The remarks from industry representatives come as businesses across the hospitality sector face mounting financial challenges, with calls mounting for government intervention to help sustain employment and investment.