BAKERS and pie-lovers accross East Lancashire are celebrating after the coalition government reversed its plans to add 20 per cent to the price of pasties.
The U-turn came after pressure from the baking industry and confusion over revised definitions of ‘hot’ and ‘warm’ products.
The change means hot food, such as sausage rolls or pasties that are cooling down rather than being kept hot in a special cabinet, will not be liable for VAT.
Lara Oddie, marketing director for Nelson-based Oddie’s Cakes, which has 16 outlets in East Lancashire, welcomed the decision and said was great news for her business and other bakeries.
She said: “It’s a massive victory for common sense.
What the government was proposing would have been completely unenforcable. The problems for the company and our staff would have been ridiculous and this u-turn is brilliant for us.”
Lara’s father Bill was one of more than 500 bakers who joined forces to rally outside Westminster in April in protest at the proposed VAT hike.
Pie giant Holland’s, based in Baxenden, echoed the joy expressed by Oddie’s.
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