MARKET NEWS

VAT on children’s meals to be cut to 5% this summer

A temporary VAT cut from 20% to 5% will be applied to all children’s menu meals served in restaurants this summer, the government has announced.

The tax cut will run from 25 June to 1 September and apply to all meals served from a children’s menu and marketed, presented and priced as children’s meals.

The government has said it “expects” businesses to pass savings on to families by lowering prices.

Kate Nicholls, chair of UKHospitality, said: “It’s good to see the government recognise the importance of a lower rate of VAT for hospitality as the quickest and simplest way to lower prices and boost consumer confidence”.

Zero Hours Consultation:

The Government has issued a consultation on how new regulations relating to Zero Hours Contracts and agency workers should be applied. Essentially, the intention of the new rules is to give workers:

• a right to guaranteed hours, where the number of hours offered reflects the hours worked by a qualifying worker during a reference period
• a right to reasonable notice of shifts
• a right to payment for shifts cancelled, curtailed, or moved at short notice

The consultation aims to establish details of the new rules, such as what should constitute a short notice period.

Foodservice prices rise as global cost pressures mount

Food and drink prices in the hospitality sector rose by 0.2% month-on-month in April.

The rise in inflation marks a return after a brief period of relief on domestic costs led to deflation in March.

April’s figures show that geopolitical tensions, elevated oil prices and rising commodity costs are driving wholesale prices higher in the UK, as the protection provided by forward contracts starts to weaken.

Seafood, fresh produce and beverages recorded the biggest price rises, driven by

energy costs, supply constraints and climate pressures. Although dairy and domestic

proteins remained relatively insulated by strong local supply, broader global supply

chain pressures continue to push inflation higher.

COMMODITIES REPORT

Fruit & Vegetables:

Summer has officially arrived and with it comes a flood of seasonal UK and EU produce. Jersey New potatoes are now in season. They need little work to shine – simply wash, steam and season. Add some UK peas for a classic summer pairing.

Sadly, UK asparagus and wild garlic are now out of season but if you are looking for something more dramatic, why not try courgette flowers.

June is an excellent month for fruit with UK raspberries, gooseberries, strawberries

and cherries all in abundance.

Spanish melons have been impressive recently with their sweetness and consistency, while quirky donut

UK & EU Poultry:

Fresh chicken prices across the UK and Europe continue to be unstable due to an

unprecedented combination of disease-related supply losses, structural reductions in

production capacity, rising operating costs and emerging trade restrictions.



While inflationary pressures from energy, labour, feed and logistics remain

significant, the principal driver behind current market conditions is the ongoing Highly

Pathogenic Avian Influenza (HPAI) crisis affecting Europe, particularly Poland.

The scale of the outbreak has now expanded beyond isolated incidents and has

become a Europe-wide supply issue affecting chickens, turkeys, ducks, breeding

stock and laying hens across multiple countries.

European HPAI activity is currently running approximately 287% higher than the

previous reporting year, highlighting the unprecedented scale of disease pressure

facing poultry producers across the continent.

Recent surveillance reports confirm that avian influenza outbreaks continued to rise

throughout 2025, with disease activity showing little sign of stabilisation as the

industry entered 2026.

As a result, poultry availability remains constrained and market prices are expected

to remain firm throughout 2026 and potentially into 2027.

Chemicals & Disposables:

Within chemicals and plastics, crude oil prices have become increasingly volatile in recent months.

While earlier forecasts suggested oil prices would soften during 2026 due to oversupply, ongoing conflict has instead pushed energy and petrochemical costs higher, creating renewed inflationary pressure across resin, packaging and chemical-based products. Board/pulp and hygiene paper markets remain comparatively stable, supported by balanced supply and softer global demand.

However, with the crude oil price increasing, suppliers are now seeing rising costs across energy, production and transport, with these pressures already feeding into wider pricing in the current market.

Disposables and foil continue to experience the greatest cost pressure. Nitrile glove prices have been driven up by higher nitrile butadiene rubber, energy and freight costs. Vinyl gloves have experienced even greater inflation, due to increases in PVC and other oil-derived raw materials.

Tuna Prices:


Tuna supply remains under pressure across both the Western and Eastern Pacific, which is continuing to drive cost inflation through the market. In the Western Pacific, raw material prices in Bangkok have risen 40% since the start of 2026 due to weaker fishing conditions, the ongoing impact of El Niño and higher fuel costs. In the Eastern Pacific, catches in Peruvian waters are also running below normal levels, with reduced vessel activity adding further pressure to supply. El Niño is expected to continue influencing ocean temperatures and tuna migration patterns, making catches more difficult.

At the same time, elevated oil prices are increasing costs across the supply chain, from fishing and processing through to transport.

Seasonal Recipe Suggestion



These potatoes are delicious; great served as a side, or as finger food with your favourite sauce! Adding vinegar to the water seasons them from inside, and a generous drizzle at the end really creates the iconic chip shop flavour. You can make this recipe with any potatoes, but when Jersey Royals are in season, nothing can beat them.

Salt and Vinegar Roasted Jersey Royal Potatoes

Serves 2

Ingredients:

500g Jersey Royal Potatoes

½ cup white vinegar, plus more to serve

Olive Oil

Salt & Pepper

Method:

Step 1

Preheat your oven to 200°C/Gas 6. Give the potatoes a wash and scrub. Cut larger ones into 3-4 cm chunks, leaving small one’s whole.

Step 2

Transfer to a saucepan and add the vinegar, a generous pinch of salt, and cold water until covered. Bring to boil and cook until tender – test with a knife tip. Drain and set aside to cool slightly.

Step 3

Spread the potatoes out in a baking tray and toss them with oil, salt and pepper. Roast for 15-20 minutes, shaking occasionally, until golden brown with crispy edges.



Step 4

Remove to a serving bowl, then drizzle over more vinegar and sprinkle with flaky salt to taste.