There’s no tax on caviar or smoked salmon. So why put it on our pies?

Sarah Simpson, area manger, at Pound Bakery, Corn Market, Halifax.
Sarah Simpson, area manger, at Pound Bakery, Corn Market, Halifax.

A bakery has slammed the introduction of VAT on hot food as another example of a “millionaire’s budget.”

Chancellor George Osbourne’s Budget last week puts VAT on hot take-out food from October.

It’ll mean a 20 per cent rise in the price of all sausage rolls, pasties and pies.

Pound Bakery, which has a store in Corn Market, Halifax, has criticised the decision.

Mark James, its chief operating officer, said: “There is no tax on caviar and smoked salmon.

“So why put it on the products we sell, which represent excellent value for money, providing plenty of choice for people on a tight budget?”

He went on: “Pound Bakery is already a firm favourite with the people of Halifax and we get fantastic feedback from our customers.

“This is just another example of the millionaire’s budget, further taxing people who are already being hit hard in their pockets and we are strongly opposed to it.”

Mr James confirmed Pound Bakery had no plans to change its name in light of the forthcoming enforced price increase.

The controversial new levy will only be added to food “hotter than the surrounding ambient air temperature”, and not cold food, although doubts over how this will be accurately measured have sparked fears of lengthy court cases.

Bakery giant Greggs, which has two stores in Halifax town centre, saw £30 million wiped off their share price following the Chancellor’s announce- ment.

Greggs chief executive Ken McMeikan has said he plans to meet Government officials to discuss the new VAT rules.

“We will be fighting this all the way,” he said.

“At a time when the British consumer is under enormous pressure, and at a torrid time for the high street, this feels like a tax measure that has been ill thought through.

“The timing could not be worse.”