Coalition makes another U-turn – on Pasty Tax

Posted on 29 May 2012

In another embarrassing and damaging blow to the Coalition's reputation as a government, Chancellor George Osborne announced that his government will scrap the much-criticised 'pasty tax'.

Bowing to pressure from pasty-lovers and manufacturers of the very British snack, the Government has changed the definition of what constitutes a ‘hot’ pasty, so that it can make a complete U-turn on its previous proposals.

The move will delight manufacturers of pasties, and Greggs, the country’s largest manufacturer of the food is one of them.

Derek Netherton, chairman of the UK’s biggest bakery chain, said the plan would have led to “further unemployment, high street closures and reduced investment.”

“Savoury sales are more than a third of our turnover, and the outcome of the consultation process could have a material impact on our sales and profits,” he said when the tax was first introduced.

The move is expected to cost the Government in the region of £60m.

The Labour Party was quick to capitalise on Osborne’s consistent swivelling in terms of policy. Labour’s shadow chief secretary to the Treasury, Rachel Reeves, described the policy reversal as “a total and utter shambles”.