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."
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."