The UK Government’s decision not to go ahead with proposed changes to VAT that would have seen a substantial rise in the price of hot sausage rolls, pasties and pies has been welcomed by local MP Katy Clark.
In an announcement last week, Tory Chancellor of the Exchequer George Osborne also did a u-turn on plans to hit static caravans with a 20 per cent VAT charge. Caravans will now see VAT applied at 5 per cent from April 2013, while freshly-baked takeaway food will be VAT exempt, as long as it is not kept hot.
Commenting on the reversal of initiatives announced in the March Budget, Katy Clark said, “I am delighted the UK Government has seen sense and decided to drop its damaging VAT proposals.
“It became clear very soon after the Chancellor announced his plans for a ‘pasty tax’ just how ridiculous this idea was. As well as placing an unacceptable bureaucratic burden on bakeries across the United Kingdom, the proposals would have been completely unworkable.”
With regard to the ‘caravan tax’, Ms Clark said, “Had VAT been imposed at 20 per cent this would have done great damage to the UK’s tourism industry and put significant numbers of jobs at risk.
“I would have preferred that they were completely free of VAT rather than the compromise 5 per cent the Government have come up with, but this climb-down is welcome.”
The Labour MP for North Ayrshire & Arran voted against both UK Government proposals and said, “I’m glad the Government has been prepared to listen to the voice of reason in this instance and thought again on the matter.”