'Pasty tax' gets the go-ahead
REBEL MPs last night failed to have the hated 'pasty tax' axed – hours after David Cameron was taunted for exempting caviar from VAT.
Tory and Liberal Democrats had joined Labour in a Commons vote aimed at forcing Chancellor George Osborne to drop plans to apply the 20 per cent tax to hot food.
The Government’s majority was chopped to 35 as MPs voted by 295 to 260 in favour of keeping the tax.
Lib Dem Stephen Gilbert, one of those behind last night’s bid, had earlier asked: “The Prime Minister will be aware there is no VAT on caviar, yet the Government is proposing to put VAT on the Cornish pasty. Can he tell me why that’s fair?”
More...
Mr Cameron replied: “What is unfair is that products sold in a fish and chip shop are subject to VAT, those same products can be sold in supermarkets not subject to VAT.”
Bakers will march on Downing Street next week over the tax.
Labour MPs also failed to have the 50p top tax rate cut to 45p halted, despite claims it would hand a £40,000 boost to 14,000 millionaires.