Greggs share price soars following 'pasty tax' U-turn

Baked goods outlet Greggs has received significant publicity from the 'pasty tax' saga. Credit: Tim Ireland/PA Wire

Bakery chain Greggs was celebrating today following the Government's U-turn on the unpopular "pasty tax".

Chancellor George Osborne caved in on his plans to charge the 20% rate of VAT on hot baked snacks such as pasties and pies.

The climbdown, which followed a campaign to scrap the tax that was supported by 300,000 signatures, saw Greggs shares rise 8% today.

Greggs chief executive Ken McMeikan said: "This is fantastic news for the customer more than anything.

"If we had to put up prices by 20% in the current marketplace when consumers are having a very difficult time we expected there would be an impact on sales but we don't know what it would have been.

"I think the Government deserves to be applauded."