Anger is rising at plans to hike prices with a “pasty tax”.

The tax is outlined in the Conservative and Lib Dem coalition budget, with a move to add VAT to takeaway goods sold above ambient temperature.

Chancellor George Osborne has said the move was part of ending "anomalies" in VAT.

Mebyon Kernow were quick to condemn the move saying it would have a damaging effect on local workers and businesses.

The party’s deputy leader, councillor Andrew Long “The introduction of VAT onto hot food such as pasties, shows how the Conservative and Liberal Democrat Coalition simply do not understand the needs of Cornwall.

“This tax could have a devastating impact on the pasty producers and retailers in Cornwall, and it would also hit the wallets of ordinary people throughout the Duchy.”

Businesses have also rounded on the plans online with The Cornish Crisp Company saying: “The Pasty tax will make it even harder for independent manufacturers to remain competitive, this may drive consumers away”.

The Cornish Mussel Shack said it would, “seriously affect business in Cornwall”.

The pasty tax has even seen members of the political parties in the coalition calling for it to be dropped.

Alex Folkes, deputy leader of the Lib Dems in Cornwall, said: "Adding 20% VAT to the price will inevitably see a drop in sales with no extra money going to the baker. Lower sales will mean job losses in areas which cannot afford them.

"The Government has said that they are consulting on this proposal. I hope that they are genuinely going to listen to what people say about the impact on the Cornish economy and that they decide that a pasty tax is a bad idea."

A ‘Say No to the Pasty Tax’ group has been set up on Facebook, with a flood of people stepping up to damn the plan.