Prime Minister David Cameron has defended the decision to charge VAT on hot food served by shops and supermarkets.
Mr Cameron said that the move - which will add 20% to the cost of hot pies and pasties sold by shops like Greggs - would defend takeaway restaurants against competition from major chains.
He said: "What the Government has to try to do is make sure the VAT rules are fairly applied.
"I don't think it is fair that the small businessman running a fried chicken takeaway is having to charge his customers VAT but the big supermarket isn't having to pay VAT on fresh hot chicken."
Mr Cameron also admitted that he had eaten a hot pasty from the West Cornwall Pasty Company in Leeds. After his comments, the company tweeted:
Network Rail later said the branch of the company in the station closed on the 31 March 2007.
But they also said that there was a branch of the Cornish Bakehouse up until the 23rd March.
On Wednesday morning, the Labour leader Ed Miliband talked to the press outside a Greggs outlet in Redditch, where he, the shadow chancellor Ed Balls and the shadow Chief Secretary to the Treasury Rachel Reeves made a brief stop to buy some sausage rolls.
On Tuesday, the boss of Greggs accused George Osborne of having "lost touch" after the Chancellor admitted he could not remember the last time he bought a pasty.
Chief executive Ken McMeikan said ministers did not appreciate the impact changes to VAT rules would have on ordinary people.
The high street bakery chain saw millions wiped off its shares after the Chancellor used the Budget to clamp down on a loophole which has meant some hot takeaway foods - like sausage rolls and pasties - escaped VAT.
During George Osborne's appearance at a Treasury select committee, he was asked by the Labour MP John Mann the last time he bought a pasty at Greggs.
The Chancellor replied: "I can't remember the last time I bought a pasty in Greggs."
Mr Mann retorted: "That kind of sums it up."
He then went on to ridicule the Treasury consultation document setting out the new criteria on what qualifies as "hot" food for VAT purposes:
Mr Osborne, however, insisted that it was all perfectly straightforward.
What are the hot take away food VAT changes?
- Hot food means food which, or any part of which, is above the ambient air temperature
- Ministers say all food sold "above ambient temperature" should carry VAT.
- Food that is at or below ambient temperature at the time they are purchased will not be taxed
- Ministers say this will clarify the rules in this area and ensure all hot takeaway food is taxed consistently