The Cornish Pasty industry is celebrating today after the Government announced an about turn on its controversial ‘pasty tax’ plans.
The Government has altered its definition of a ‘hot’ pasty, enabling them now to escape VAT if they are cooling down on shelves, rather than being kept hot in a special cabinet.
Commenting on the news, North Cornwall MP Dan Rogerson said: “The Liberal Democrats in Cornwall have worked locally and nationally to persuade the government that there is another way forward. The fresh pasty from the bakers we have all grown up with will stay affordable and local jobs can be saved. Thankfully sensible voices in the Coalition have listened.”
Bishop Fleming tax expert Robert Bailey commented: “We are delighted, having been one of the first to draw attention to the unworkable proposals, to hear that the Chancellor will be amending the “Pasty tax” put forwards in the budget this spring.
“The various VAT changes were presented as ‘closing loopholes and correcting anomalies’ in the VAT system but the hot food proposals were simply unworkable and, in addition to adding a considerable tax burden to Cornwall’s indigenous food industry, would have resulted in massive uncertainty about when the higher tax rate applied.”
Labour have branded the u-turn as a “complete and utter shambles”.
