Greggs to tell Treasury hot-food tax is ‘muddled’

The battle for VAT-free pasties will move to Whitehall tomorrow when Ken McMeikan chief executive of Greggs puts his case to Treasury Minister David Gauke.

Today he warned investors in Britain’s favourite High Street baker that the planned imposition of VAT on hot sausage rolls and pasties in October “could have a material impact on our sales and profits”.

McMeikan will tell the Treasury its plans are muddled and confusing because it is so difficult to define what an ambient temperature is. Instead he will suggest VAT should be charged on food kept hot for sale, reheated food or food sold in heat-retaining packaging. He said: “That would be a much more workable solution for the Government because it is very easy to monitor.”