Greggs boss: Osborne is out of touch

Greggs chief executive claimed George Osborne had "lost touch" with ordinary families Credit: Tim Ireland/PA Wire

The chief executive of Greggs has accused George Osborne of having "lost touch" after the Chancellor said he could not remember the last time he bought a pasty from the baker.

The Chancellor's Budget closed a loophole that saw some takeaway foods, such as sausage rolls and pasties, escape VAT, a move Greggs boss Ken McMeikan said showed ministers did not appreciate the impact it would have on ordinary families.

Mr McMeikan told BBC2's Newsnight: "I think to a degree they have lost touch with the issue here - that for ordinary, hard-working families putting 20% on to a product that is freshly baked actually is going to make a severe dent in their pockets when they can ill afford it."