'Pasty tax' row continues

Chancellor George Osborne has been challenged on his decision to increase VAT on hot foods including pasty's, pies and sausage rolls.

Greggs boss urges VAT rethink

Greggs Chief Executive Ken McMeikan has urged Treasury ministers to rethink the planned VAT rise their products.

In his budget, Chancellor George Osborne proposed introducing a 20% tax rate on hot takeaway foods.

Mr McMeikan says Greggs' pasties, pies and sausage rolls should not be subject to VAT because the customer cannot be guaranteed a hot product.

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