- 28 updates
Shadow Chancellor Ed Balls has described the Government's tax policy as "incoherent and flawed". He also welcomed the u-turns but told ITV News further tax reform was needed.
Justice Secretary Kenneth Clarke says that the decision to back out of new VAT rules on caravans was a result of the government listening to taxpayers.
Bakery chain Greggs was celebrating today following the Government's U-turn on the unpopular "pasty tax".
Chancellor George Osborne caved in on his plans to charge the 20% rate of VAT on hot baked snacks such as pasties and pies.
The climbdown, which followed a campaign to scrap the tax that was supported by 300,000 signatures, saw Greggs shares rise 8% today.
Greggs chief executive Ken McMeikan said: "This is fantastic news for the customer more than anything.
"If we had to put up prices by 20% in the current marketplace when consumers are having a very difficult time we expected there would be an impact on sales but we don't know what it would have been.
"I think the Government deserves to be applauded."
Liberal Democrat MP for St Austell & Newquay, Stephen Gilbert, has said there will be dancing in the streets of Cornwall over the pasty tax u-turn:
Shadow Treasury minister Chris Leslie has said that the pasty tax u-turn is evidence that George Osborne's Budget is in 'a shambles'.
He said: "The whole of the budget is in total crisis and obviously the whole of the Treasury is having its competence questioned."
Treasury sources are describing the revision to their pasty tax plans as "nice, easy, simple."
Let's look at what hot foods will be subject to VAT and what will escape the 20% tax after the Government climbdown.
Hot food not subject to VAT:
- Sausage rolls
- Anything sold from shelves and being allowed to cool having being cooked
Hot food that will have VAT imposed:
- Food kept and sold hot
Latest ITV News reports
Justice Secretary Kenneth Clarke has defended the Government's tax U-turns, saying the changes came as a result of listening to taxpayers.
The Government has scrapped plans to implement 20% VAT on pasties and reduced the planned tax on static caravans to 5%