Pasties: Osborne's favourite. For Clegg, quiche. |
Chancellor George Osborne has reversed his half-baked plan to extend VAT on Cornish pasties. As long as they’ve been put on a tray and allowed
to cool, they’ll be exempt from the 20% hike. The climb-down’s
been portrayed as a resounding victory for protesters across Cornwall.
Lib Dem MP for St Austell
and Newquay Stephen Gilbert, who’d opposed the tax, said: "The strength of
feeling from local people has been clear since these proposals were
announced. Plans to increase VAT would
be unfair, unenforceable and cost jobs.”
Gilbert was on the right lines but the
real issue wasn’t the genuine Cornish pasty, threats to the Duchy’s businesses or local protest. Greggs, the
UK’s largest bakery chain with 1,400 shops and thousands of employees
nationwide, had lobbied the government for a U-turn. Following Osborne’s announcement in March,
some £30 million had been wiped off Greggs' shares; the giant manufactures various hot snack items. News of the Chancellor’s retreat immediately increased the share price by 9%.
"Yum yum!" |
Osborne’s hike, the anti campaign in response and final humiliating defeat for the Chancellor are a microcosm of this terrible
government’s blundering policies. For a time though, the Coalition was at least able to use the Great Pasty Outcry as a handy distraction. Now perhaps effort can be put into even more important issues.