Budget Reaction 2026

I purposely let the dust settle to give my full reaction to the budget. Why? Because I wanted to dwell on what was announced and, more importantly, what wasn’t!

I have spent many years trying to bring about reform of the VAT system. It has been a long and often lonely space to be. I have been told several times it will never happen and that I was wasting my time. Over the last few years, the cost of doing business has started to affect the rest of the sector. ~We have always worked on volume and tight margins but the rest of the sector had a bit more headroom, that has now changed as their costs have increased. We have acted like a canary in a cage for the rest of the sector.

Over the past eight or nine years, I have been working to pull the sector together, from kebabs and curry to equipment and even ice cream! We have built a strong network and great working relationships which can only bear fruit as we go forward.

The budget was disappointing, and no one was more disappointed than I was. There is a strong argument for a VAT cut on at least food: it is anti-inflationary, it stimulates growth and it provides jobs. For some reason, the government opted not to deliver it even though there were strong rumours in Westminster on the morning of the budget that it was going to be announced. We must remember we didn’t get any further tax increases and the minimum wage for 18–21-year-olds was not increased as drastically as feared, we have long been seen as easy targets for increasing tax receipts ofr the government but hopefully the tide has turned.

The threshold for business rates does help some of us for sure, but it doesn’t go far enough.

There were also a couple of things introduced quietly. They are mandating EPOS companies to update software to prevent Electronic Sales Suppression and also, in 2029, all VAT will be collected by direct debit.

Why do I think it didn’t happen? Well, I think there is an element of caution not to deliver a budget that rocks the money markets. They want to show some stability first. I also think they are worried about the Americans not supporting them if we should go to war and have had to commit money to the defence budget. I know they committed to £10bn to Ukraine but that is part of defence as they want to stop or at least slow the Russian war machine.

For me, the next steps are to speak to the rest of the sector, listen to their thoughts and then dust ourselves down and go again. VAT reform makes a lot of sense and can help deliver much-needed growth for the economy. We shouldn’t give up as it’s the right thing for the sector and the right thing for the country. To give up now would be a mistake, but we need a well-thought-out plan to try to deliver it.

We didn’t get what we wanted this time, but it is on the agenda and the calls are not going to disappear.

Andrew Crook

President – National Federation of Fish Friers