Live updates

Osborne responds to charity protests

The charities tax announcement is the latest U-turn from the 2012 Budget Credit: REUTERS/Suzanne Plunkett

The charities tax cap - limiting relief at £50,000 or 25% of income - was proposed in George Osborne's March Budget but sparked massive protest from charities, who warned they could lose a significant proportion of their income.

Announcing the latest in a string of U-turns on Budget proposals, following climbdowns on the "pasty tax" and "caravan tax" earlier this week, Mr Osborne said that he would be pressing ahead with the cap on income tax reliefs for wealthy people which do not relate to charitable donations.

Advertisement

Advertisement

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."

Balls: Osborne's 'economic plan is collapsing'

Load more updates