Dennis the 'Bloody Peasant'
29th May 2012, 10:09
Syria, Euro crisis....but also...
Labour has condemned the way the government has dealt with planned VAT rises on Cornish pasties and static caravans as a "total shambles", following a reversal of the plans.
The U-turns from Chancellor George Osborne's Budget follow protests by bakers and caravanning enthusiasts.
The government said it showed it was listening, but Labour said the VAT rises had been "ill thought-out".
A 5% rate of VAT on static caravans will be delayed until April next year.
And the government has altered the definition of what is a "hot" pasty to allow the reversal of its plans.
Currently, VAT is not charged on most food and drink, or hot baked goods, but is payable on takeaway food sold to be eaten hot.
Shares in bakery firm Greggs rose 8% on the news but Labour's shadow chief secretary to the Treasury, Rachel Reeves, described the policy reversal as "a total and utter shambles".
She said: "These partial U-turns, just a few weeks after ministers were defending the pasty tax and caravan tax, show just how ill-thought through the Budget was and how out of touch David Cameron and George Osborne are."
Ms Reeves accused ministers of trying to avoid a Commons defeat on Labour's upcoming motion - especially after their support dropped over Parliament's last vote on the caravan tax.
After the amendment, food such as sausage rolls or pasties sold on shelves - that is, cooling down, rather than being kept hot in a special cabinet - will not be liable for VAT.
The definition of a "hot" pasty is being altered to allow the reversal, while a 20% charge due to be levied on static caravans will now drop to 5%.
The government said it had improved the policies after engaging with concerns.
(More at http://www.bbc.co.uk/news/uk-politics-18245963)
Labour has condemned the way the government has dealt with planned VAT rises on Cornish pasties and static caravans as a "total shambles", following a reversal of the plans.
The U-turns from Chancellor George Osborne's Budget follow protests by bakers and caravanning enthusiasts.
The government said it showed it was listening, but Labour said the VAT rises had been "ill thought-out".
A 5% rate of VAT on static caravans will be delayed until April next year.
And the government has altered the definition of what is a "hot" pasty to allow the reversal of its plans.
Currently, VAT is not charged on most food and drink, or hot baked goods, but is payable on takeaway food sold to be eaten hot.
Shares in bakery firm Greggs rose 8% on the news but Labour's shadow chief secretary to the Treasury, Rachel Reeves, described the policy reversal as "a total and utter shambles".
She said: "These partial U-turns, just a few weeks after ministers were defending the pasty tax and caravan tax, show just how ill-thought through the Budget was and how out of touch David Cameron and George Osborne are."
Ms Reeves accused ministers of trying to avoid a Commons defeat on Labour's upcoming motion - especially after their support dropped over Parliament's last vote on the caravan tax.
After the amendment, food such as sausage rolls or pasties sold on shelves - that is, cooling down, rather than being kept hot in a special cabinet - will not be liable for VAT.
The definition of a "hot" pasty is being altered to allow the reversal, while a 20% charge due to be levied on static caravans will now drop to 5%.
The government said it had improved the policies after engaging with concerns.
(More at http://www.bbc.co.uk/news/uk-politics-18245963)