- 28 updates
The Conservative backbencher Nadhim Zahawi has welcomed the change in VAT on static caravans:
But Labour MPs are mocking the Government's u-turn:
Liberal Democrat MP for St Austell & Newquay, Stephen Gilbert, has welcomed reports of the Government u-turn on the 'pasty tax':
Cornish MP George Eustice welcomed the move on the pasty tax:
A spokesman for the Treasury said:
The Government is planning to reverse its plans to charge VAT on Cornish pasties: the controversial levy that became known as the 'pasty-tax'.
The government is said to have altered the definition of what is a "hot" pasty to allow the reversal. Under the new definition food such as sausage rolls or pasties sold on shelves, (i.e. cooling down, instead of being kept hot) will not be liable for VAT.
The hot issue consuming both main political parties today is the 'pasty-tax' announced by George Osborne in his budget.
David Cameron admitted he's a fan of pasties. And Ed Miliband - sausage rolls. So why the hot air over hot food?
Romilly Weeks on a new takeaway tax some are finding hard to swallow:
During his final weekend of campaigning in May 2010, a hungry David Cameron turned to the current hot political potato - a pasty.
Mr Cameron was eating his lunch on the move in the village of Woodstock in his own constituency of Oxfordshire.
Leeds station's last pasty shop, the Cornish Bakehouse closed earlier this month.
But shop workers said the station also once had a branch of the West Cornwall Pasty Co. But this shut in 2007.
One woman who works in a station store said: "David **Cameron? Buying a pasty on this station? I don't remember that.
Workers at another branch of the West Cornwall Pasty Co. - about 400 metres away in Leeds city centre - said they had not seen David Cameron either.
Staff at the branch of Greggs next door also said they had no recollection of ever seeing the Prime Minister in the store.
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%