Pirate FM News

Pasty Tax Hits Cornwall

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Published by the Pirate FM News Team at 7:02am 1st October 2012. (Updated at 7:25am 1st October 2012)

Cornwall faces the "pasty tax" for the first time, amid warnings that it could tip struggling businesses "over the brink".

Chancellor George Osborne announced plans in the Budget to raise £110m by levying 20% VAT on hot baked goods. It comes into force on Monday.

The Government later staged a partial climbdown by exempting products that are left to return to "ambient temperatures" on shelves.

But food kept warm for customers in hot cabinets will still attract the full tax.

Pirate FM has learnt some bakeries are turning off their cabinets to keep prices down. But it will mean customers who want a hot pasty have to work harder to find one - and then pay more.

St Ives MP Andrew George was part of the campaign to ditch the tax. He said: "If you get it straight out of the oven it's really lovely and if it cools down and it's cold it's still lovely. But that's the nature of a pasty. It's very much a humble dish for working people.

"We now can go almost anywhere in the country and at the rail station or, in some places, the high street we'll see a pasty shop. Those pasties are made in Cornwall, they're taken up country and they're sold as an export. They're a real economic driver for Cornwall."

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