'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.

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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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