Government takes a pasting over bakery U-turn
Government ministers are being ridiculed by Labour this morning following the implementation of two abrupt U-turns on planned VAT rises – one affecting ‘hot’ Cornish pasties and the other static caravans.
Describing both changes in tack as a “shambles” Labour claimed that both measures were proof of how “ill thought out” the Budget had been and how “out of touch” David Cameron and George Osborne are.
Previously the government had pledged to raise taxes on heated sausage rolls and pasties, but now these will not now be liable if they are ‘cooling down’, that is not stored in a heated cabinet. This follows a vociferous 'save our pasties' campaign mounted by Greggs.
Static caravans will also be spared a tax hike after caravaners mobilised to protest the plans, their efforts have been rewarded with a decision to scrap a 20% tax rate and supplant it with a 5% rate.
Announcing their pasty decision with a large slice of humble pie ministers claimed to have “improved” their policies after addressing “practical concerns” raised by the public.
Critics have also pointed out that the combined measures would only cost the government around £65m in lost revenue, making them relatively painless to implement.