Llanelli bakery welcomes victory in ‘pasty tax’ battle

One of the best-known bakery firms in South Wales has welcomed the news of the Government’s U-turn on the so-called ‘pasty tax’.

Jenkins the Bakers, a third generation family business based in Llanelli and with shops across South West Wales, was in the vanguard of the campaign to halt the tax proposal.

“The Government U-turn is a victory for people power,” said the Jenkins Bakery’s company secretary and director David Jenkins.

“At the outset, we said that the tax was unmanageable, unpalatable and unfair.

“The Government was out of order in attempting to introduce VAT on some of the nation’s favourite and most affordable foods.

“We know how popular our products are and many appeal to families who are already suffering severe budget restraints in these difficult economic times.

“If the ‘pasty tax’ had gone ahead, our customers would have felt the damage of this unwelcome tax in their pockets and that would have been bad news all around.

The Chancellor, George Osborne, angered craft bakers across the country with his Budget plan to change the VAT rules on freshly baked, hot pies, pasties and other savouries.

Osborne is to reverse plans to charge VAT on food that is designed to cool down, such as sausage rolls and pasties.

Under changes to the plans, the Government will charge VAT on food designed to be eaten warm, for example on rotisserie chickens sold hot by supermarkets.

The VAT, due to be enforced from October, would have added 50p to a £2.50 savoury food item. The Treasury had been planning to raise £110m from the measure, but will now only raise £70m.

Critics said the proposals were incredibly complex since it would be hard to define ambient temperature.

Mr Jenkins added: “The VAT would have increased by 20% the cost of some of the nation’s favourite and most affordable foods. The move angered craft bakers across the country who feared for the resulting loss of sales and the effects on their businesses.

“The National Association of Master Bakers (NAMB) mounted a strong campaign against the proposals and I joined a march on Downing Street to make our feelings known.

“Throughout the campaign, the strength of public support was very visible. Customers signed petitions in all of our shops and we are very grateful to the public and our customers for their support in battling this unfair tax.”

Press release issued by Robert Lloyd on behalf of Jenkins Bakers, Llanelli