'Pasty tax' raised in Parliament

The “pasty tax” was due to the Chancellor, George Osborne deciding to apply VAT at standard rate to all food served hot, except for freshly baked bread.

At present standard rate VAT is applied when food is heated above the ambient air temperature and served to customers.

Pasty makers currently sell pasties from their bakery shops, hot straight out of the oven, and are exempt from VAT but from October 1, any pasty sold above “ambient air temperature” will be subject to the full VAT rate.

Falmouth and Truro Conservative MP Sarah Newton has said she is very concerned about the confusion regarding the pasty tax and its impact in Cornwall.

She said she is pressing ministers to clarify the effect that efforts to remove VAT anomalies will have upon the cost of Cornish pasties, and was trying to secure an intervention in a budget debate to raise this issue in the Houses of Parliament.

Penzance and Helston MP Andrew George said those in Cornwall would fight to block the tax.

He said that on the “sublimely fundamental and seriously important issue of pasty taxes in Cornwall”, the Cornish would be fighting them “on the beaches”.

Mr George and the two other Lib Dem MP’s in Cornwall have co-signed a Parliamentary petition calling for pasties and foods which have significantly advanced Protected Geographical Indication (PGI) status in Europe to be exempted.

The pasty tax has also seen plenty of people go online to slam the plan.

Among the raft of comments on Twitter were those from the Cornish Crisp Company, which said: “The Pasty tax will make it even harder for independent manufacturers to remain competitive, this may drive consumers away”

A “Say no to the Pasty Tax” group has also been set up on Facebook.

The pasty tax is not law yet. A summary of responses will be published and the responses considered before a final version of the legislation is put before Parliament in the summer.