Shadow Treasury minister Chris Leslie has said that the pasty tax u-turn is evidence that George Osborne's Budget is in 'a shambles'.
He said: "The whole of the budget is in total crisis and obviously the whole of the Treasury is having its competence questioned."
Justice Secretary Kenneth Clarke has defended the Government's tax U-turns, saying the changes came as a result of listening to taxpayers.
The Government has scrapped plans to implement 20% VAT on pasties and reduced the planned tax on static caravans to 5%
The Government continues to feel the heat over its decision to add VAT to hot takeaway baked goods, a move nicknamed "the pasty tax."