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."

Advertisement

Justice Sec defends govt u-turns

The Justice Secretary has defended three major u-turns as ministers listening to taxpayers. Plans to hold inquests in secret have been scrapped, as have controversial plans to impose VAT on pasties. Tax on static caravans are to be reduced to 5%.