The iconic British fish n' chips industry, already battling hard times, could face further price inflation resulting from a potential "no-deal" Brexit, which would lead to new tariffs on imported frozen fish fillets.

Around 40-50 percent of frozen-at-sea fillets imported into the United Kingdom originate from Russia, so the imposition of tariffs on Norwegian and Icelandic product should not lead to a major price hike, Frozen at Sea Fillets Association (FASFA) Executive Director Malcolm Large told IntraFish.

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However, any additional tariffs on products from EEA countries will stretch the already thin margins of the sector, said sources.

It's been reported that Norwegian and Icelandic fillets could be hit with a 7.5-12.5 percent import tariff, though Ivan Bartolo, regulatory affairs advisor at UK trade body Seafish, told IntraFish UK officials have not yet decided on a tariff schedule.

If the tariffs are levied, it will likely be customers who have to absorb the price increase, FAFSA's Large said.

The UK currently imports its frozen fish fillets -- the bulk of which supply British fish n' chip shops -- from Russia, Norway, Iceland, the Faroe Islands and Greenland.

Also, a major volume of frozen fish imports go via China for processing before being imported into the UK, Bartolo said.

Shop closures predicted

Andrew Crook, president of the UK's Federation of Fish Fryers, agreed that fish prices will inevitably rise.

“We have already absorbed many costs without seeing our prices increase," Crook told IntraFish.

Fish n' chips are seen as a cheap meal in the UK, but even with a price increase, it still represents “great value for money compared to other food options,” Crook said.

John Rutherford, former head of FASFA told IntraFish in October last year there might be as many as 1,000 fish n' chip shops closure over a year’s time.

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This is due to several factors, including high raw material prices, reduced quotas, and economic effects linked to Brexit.

Value added tax (VAT) further compounds the sector’s challenges.

“Most of our inputs are zero-rated and our outputs attract 20 percent VAT,” Crook said. “I firmly believe a lower VAT rate will be better for the country in the long run.”