Pasty Tax U-Turn
The row over George Osborne's decision to charge VAT on hot takeaway food has resulted in a change of policy.
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Pasty row rumbles on
Full report: Bakers celebrate 'pasty tax' u-turn
High street bakers, including Newcastle-based Gregg's, have welcomed a government u-turn on plans for a 'pasty tax'. Hot baked snacks will now not automatically attract 20% VAT.
Our Business Correspondent Ben Chapman reports.
Victory for bakers after 'pasty tax' U-turn
by Ben Chapman
A vocal campaign by high street bakers, including Newcastle-based Greggs, helped overturn an "unpopular and unfair" tax.
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Greggs boss welcomes Government U-Turn on pasty tax
New arrangements for "pasty tax" explained
The government has defended its decision to reverse plans which would have seen VAT imposed on hot takeway pasties and sausage rolls.
After a strong campaign, led by Greggs, ministers now say that no VAT will be imposed on prebaked hot products which are allowed to cool naturally. But for the first time VAT will be charged on hot rotisserie chickens bought in supermarkets.
Greggs share price up after pasty u-turn
Shares in the Newcastle-based baking giant Greggs rose by 6% this morning after the Government climb down on 'pasty tax'.
Ministers have decided to reverse plans to charge VAT on hot baked goods such as pasties, pies and sausage rolls.
Shares in the firm had fallen by 15% in the wake of the announcement in the Chancellor's Budget in March.
Pasty Tax U-Turn
The 'pasty tax' became one of the most widely criticised plans revealed in the Budget and the widespread uproar has lead to a u-turn on the policy. Click here for more information on this story.
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Pasty row rumbles on
by Gerry Foley
The debate over George Osborne's plans to charge VAT on hot takeaway food rumbles on
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