Live updates

Cold pasties not selling like hot cakes

Baker says they'll return to hot pasties after a drop in sales Credit: ITV Westcountry

Warrens bakery are returning to using warming cabinets after a fall in sales. The bakers stopped keeping their savouries warm after the government introduced a twenty per cent VAT charge in May.

A spokesperson for the company, which has 58 shops in the south west, said selling cold pasties had damaged business.

Confusion on the first day of the 'pasty tax'

Pasty shops around the south west have been digesting the first day of new tax arrangements on some of their food.

The original proposal led to widespread protests, as the so-called 'pasty tax' on hot pies threatened to embarrass the Government.

But the Chancellor backed down, and now only food which has been reheated is subject to VAT.

Some in the industry say the new arrangements are confusing for both pasty sellers and consumers.

Our Cornwall Correspondent Steve Hardy has been to one pasty shop to assess reaction to the new tax:

Advertisement

Pasty-maker is relieved at Government u-turn

Ann Muller of Ann's Pasties on the Lizard will not have to pay the VAT. She says, "My pasties are freshly baked, I don't keep anything in a hot cabinet. So the pasties are either hot or warm or cold. It was going to be really difficult to put this tax on without it seeming ridiculous".

Ann Muller is welcoming the Pasty Tax u-turn Credit: ITV Westcountry

Advertisement

'Pasty Tax' U-turn

The Government has announced a U-turn on the controversial proposal nicknamed the pasty tax. Plans to levy VAT at 20% on all hot food brought huge protests from Devon and Cornwall's pasty industry.

There have been big protests over plans for the so-called "Pasty Tax" Credit: ITV West Country

Under the new proposals, VAT will be charged on all food provided hot to be eaten hot whether it is kept in heated cabinets or in takeaway packaging. Food that is allowed to cool will be exempt. Cornish MP George Eustice has welcomed the move.

He said: "This is great news for the Cornish pasty industry and resolves all of the problems that had been raised by the industry". You can find out more on this story on our national site.

Government to considers changes on pasty tax

The government's agreed to closely consider possible changes to the so-called 'pasty tax'.

Plans to extend VAT to Cornish pasties and baked food were announced in the Budget, prompting protests from around the country. Today in Parliament a Cornish MP suggested it should NOT apply to food that's allowed to cool down, avoiding complex legal arguments.

Load more updates