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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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.

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