THE boss of a North East baker has warned he will consider legal action if the Government does not back down on plans to introduce “a tax on food”.
Greggs chief executive Ken McMeikan said he will be lobbying the Treasury to prevent a Budget proposal, which will see sausage rolls and pasties hit with VAT.
Greggs avoids VAT on its savoury foods as bakers across the country say the products are kept warm, rather than served as the hot food against which VAT is already charged.
But George Osborne announced in his Budget this week plans to “remove anomalies” from the tax system.
His attack on Greggs followed a Prime Minister’s Questions parliamentary session in which David Cameron praised the firm for its job-creation efforts.
Mr McMeikan accused the Government of looking to tax hardworking families on the snacks they buy, and slammed the VAT changes as unworkable.
“This was an announcement which we were not expecting, which will be a tax on food that will impact directly on the UK consumer at a time that they simply cannot afford it,” he said.
“We want the Government to accept that this was an ill-thought through move which will harm growth and impact on businesses, individuals and act as counter-productive to the Government’s stated aims of growing the economy.”