South Wales bakery business appeals for support in ‘pasty tax’ battle

One of the best-known bakery firms in South Wales has appealed for support from the public against the so-called ‘pasty tax’.

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

“The tax is unmanageable, unpalatable and unfair,” said the Jenkins Bakery’s operations director Russell Jenkins.

“The Government is out of order in introducing 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.

“Our customers will feel the damage of this unwelcome tax in their pockets and that is bad news all around.

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

Mr Jenkins said: “It is anticipated that the VAT will increase by 20% the cost of some of the nation’s favourite and most affordable foods.

“The move has angered craft bakers across the country who fear for the resulting loss of sales and the effects on their businesses.

“The National Association of Master Bakers (NAMB) is mounting a campaign to ensure that this proposal is dropped from ministerial plans before it can become law in October.

“We have until May 4 to make the Government see how this price increase will effect ordinary people and how unmanageable the implementation of the tax will be; concentrating as it does on the relative hotness of the product in comparison to the ambient temperature in the baker’s shop!

“The Association believe the proposal is ill conceived and poorly thought through, making it open to mis-interpretation. It will be confusing for both bakery staff and consumers who will see it as an unfair tax.”

An online public petition has been set up on the following internet link –

http://epetitions.direct.gov.uk/petitions/32044

The petition reads –

The Government has announced that the standard rate tax will be applied to all hot takeaway food, such as pasties and pies, as part of a drive to close loopholes in the VAT system.

British Baker (magazine) has joined forces with the National Association of Master Bakers (NAMB) to campaign against this draconian move.

We intend to strongly emphasise the lack of thought in this ruling and that this could very well see the demise of many more small bakers shops in the High Street due to loss of custom.

Customers visit their local bakers for pies and savoury product, as opposed to more expensive meats for their main meals, especially during the current economic climate.

A 20% increase will cause even more problems for the craft baker and their business.

Mike Holling, Chairman of NAMB, said that his association was working hard to demonstrate the strength of feeling in the industry.

Bakers are placing petitions and posters in their shops.

Mr Holling said: “We have to get the message out to consumers that they will feel the effect of this tax, in their pocket!”

The Jenkins Bakery’s Commercial Director and Company Secretary, David Jenkins, will, on Thursday, join hundreds of other bakers in a protest march, which will start at Pudding Lane and finish at Downing Street.  

Top five savouries across Jenkins Bakery shops are –

• Corned beef pasties (three sizes)
• Sausage rolls
• Traditional pasty
• Pizza
• Chicken and stuffing parcels

The Jenkins bakery employs 300 people, full and part-time, across 25 different stores in South Wales.

The company has the Gold Standard Welsh Food Hygiene Award and the Investors in People award.

The business employs 70 people at its Trostre HQ, while the Jenkins shop network stretches from Carmarthen to Bridgend. There are 13 shops in Carmarthenshire and even one as far afield as Powys.

The company celebrated its 90^th anniversary last year.

Facts and figures . . .

• Jenkins the Bakers produce 50,000 corned beef pasties a week.
• The company serves 60,000 customers per week
• 7,500 custard slices are produced in a week.
• The business uses 15 tons of flour a week
• The flour silo at the Trostre HQ sees an 18-ton delivery every 10 days.