Government performs pasty tax U-turn

The government has been described as an "utter shambles" over its handling of the pasty tax, which was reversed earlier this week.

The government has been described as an "utter shambles" over its handling of the pasty tax, which was reversed earlier this week.

Chancellor George Osborne announced in his March Budget that an extra levy would be placed on Cornish pasties, as well as static caravans.

However, he has now moved to perform a dramatic U-turn, scrapping plans to tax buyers of the hot foodstuff and delaying the implementation of a five per cent charge on caravan buyers, in what could be good news for those hoping to remain debt free.

Rachel Reeves, shadow chief secretary to the Treasury, said the decision to go back on the tax plans is a "total and utter shambles".

"These partial U-turns, just a few weeks after ministers were defending the pasty tax and caravan tax, show just how ill-thought through the Budget was," she stated.

Any positivity Britons might feel at the removal or delay of two prospective taxes is likely to be tempered by the fact the Trades Union Congress this month revealed the cost of living is rising fastest for the country's poorest households.

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