George Osborne has been mocked by MPs over his “pasty tax” after it emerged people could avoid paying VAT on hot baked goods if they wait for them to cool in the shop.
The tax status of Cornish pasties has caused an unexpected backlash against the Chancellor, after he imposed VAT on hot baked goods bought from supermarkets and bakers in the Budget.
Greggs, the high street chain, has warned extra VAT on the hot snacks will cause a decline in sales, while businesses in the south-west are claiming there could be job losses in the Cornish pasty industry. Full report in The Telegraph here