[letmein]

A Tax on Snacks Aggravates Austerity Tensions in Britain

LONDON — George Osborne, the posh chancellor of the Exchequer, confesses he cannot recall the last time he partook of a pasty, the calorie-busting savory pastry, served hot, that is beloved by millions of average Britons.

That may well explain why Mr. Osborne’s recent decision to impose a sales tax of 20 percent on pasties and other takeout snacks — while cutting the top income tax rate on financiers and other highly paid Britons — has created such a furor here.

The tax controversy, which the British press has called, inevitably, “Pasty-gate,” has come to symbolize the increasingly vitriolic debate in Britain over who should shoulder the burden of the government’s drive to cut debt and spending.

The tax has ignited a political firestorm, prompting even generally pro-government tabloid newspapers to attack it and leading the equally posh British prime minister, David Cameron, to claim — not all that convincingly — that he, truly, is an aficionado of the pasty (which rhymes with nasty).

The issue has also revived memories of the poll tax and other unpopular measures imposed by previous Conservative Party-led governments that left many Britons feeling that their leaders were out of touch.

The new tax, announced last week as part of the government’s austerity budget, was aimed at closing a loophole that exempted hot, freshly baked takeout foods, like pasties, pies, toasted sandwiches and rotisserie chickens, from the point-of-sale tax known in Britain as the value-added tax. Under the new budget, which effectively becomes law immediately, the price of such items will henceforth include a value-added tax of 20 percent.

Until now, the coalition government led by Mr. Cameron’s Conservative Party has made a strong case that, in light of a budget deficit of more than 10 percent of gross domestic product, Britain has no choice but to embark on one of the most severe austerity regimes in Europe.

Leading the charge has been Mr. Osborne, Mr. Cameron’s close friend and top political adviser, whose social pedigree in class-obsessed Britain is among the more refined in Parliament. An Oxford graduate, like Mr. Cameron, Mr. Osborne stands to inherit the title of baronet from his father.

As the economy continues to sag, Mr. Osborne’s clarion call that “we are all in this together” is beginning to ring hollow for a British public battered by high gasoline prices, a dormant job market and, now, more expensive pasties.

On Thursday, the Organization for Economic Cooperation and Development predicted that the British economy would experience its second consecutive quarter of contraction this spring, putting the economy back in a recession.

According to a YouGov poll that was released Thursday, Mr. Cameron’s government would get only 33 percent of the popular vote if an election were held now, compared with 43 percent for the opposition Labour Party. Mr. Cameron’s party won 36 percent of the vote in 2010. The next election must be held before May 7, 2015.

It has long been expected that the party in power would suffer political consequences as the public feels austerity’s bite. But Mr. Osborne has been betting that the prospect of economic recovery would be enough to convince voters that the current Conservative-led coalition government was better positioned than Labour to improve Britain’s parlous finances and make the economy more competitive on world markets.

That, in fact, was the stated impetus behind Mr. Osborne’s central budget measure: cutting the top tax rate to 45 percent from 50 percent. Many economists have supported such a rate cut as essential to attracting more investment and bolstering London’s claim to be world’s leading financial hub.

Mr. Osborne proposed to pay for the cut in part by increasing the fees that the wealthy pay when they buy and sell expensive properties in London.

Other revenue-raising measures, however, affected the middle class, including the scrapping of tax allowances for retirees — a change that was quickly labeled the granny tax — and the snack-food levy, perhaps forevermore known as the pasty tax.

Inflaming the debate is not only that the chancellor announced the tax, but how he has defended it.

At a parliamentary hearing Wednesday, Mr. Osborne was asked when he had last sampled a pasty at Greggs, a nationwide bakery chain that specializes in the delicacy.

The chancellor, who in public settings can come across as haughty in comparison with the more glib Mr. Cameron, scrambled for an appropriate response before acknowledging what, by then, had become obvious to all: he does not frequent the chain.

The British press, which delights in poking fun at the upper-class foibles of Mr. Osborne and Mr. Cameron, pounced. The Sun called on the government to reverse the pasty tax, and The Times published a list of Greggs outlets that it asserted would be most convenient for the busy chancellor to patronize.

At lunchtime Thursday at the closest shop on the Times list — less than a mile from Mr. Osborne’s residence in the Westminster area of central London — a line of civil servants, construction workers and others waited to pay 90 pence, or $1.43, for a sausage roll or £1.42 for a heartier steak bake.

Mike Henderson, a network engineer who calls himself a frequent Greggs customer, said he was not surprised that the chancellor was taking aim at low-budget snacks to raise money.

“This government does what it wants to do, and we have to follow,” he said. He added, “Don’t forget, these are the Tories. It’s history repeating itself.”

The dispute threatens to set back Mr. Cameron’s signature accomplishment as prime minister — detoxifying a political brand that in the post-Thatcher years had become closely linked with policies that favored the better-off.

Even if the bitterness over the pasty tax dissipates, the aftertaste of an out-of-touch government that looks out for its own could linger.

“We cannot all afford to pay £3 a day for a sandwich lunch,” Mr. Henderson said. “Here you can come in and get a cheese roll for 90 pence.”

http://www.nytimes.com/2012/03/30/bu...n-britain.html

[MTVN]

I think this is all being blown out of proportion tbh, I do love pasties but I don't really see why they should be the only hot food to be exempt from having VAT

And it's quite pathetic to see Cameron/Osborne and Miliband/Balls both competing to try and show that they love pasties the most, look at the idiots

[arista]

Originally Posted by MTVN

I think this is all being blown out of proportion tbh, I do love pasties but I don't really see why they should be the only hot food to be exempt from having VAT

And it's quite pathetic to see Cameron/Osborne and Miliband/Balls both competing to try and show that they love pasties the most, look at the idiots

Very True
and on the TV News that Pathetic Toffee Nosed Labour Leader
pounced on a old lady.
With a False Smile.


In any case Greggs can take the Tax as their own Hit
if it comes in.
They can still be cheaper than any other bakery/hot food type.

[joeysteele]

I think there shoudn't be this tax on the like of pasties, sausage rolls etc, I can see a difference to buying a takeaway meal to eat at home as opposed to a quick pasty at lunchtime.
Having said that, a tray or bag of chips will have VAT on them so maybe it doesn't matter in the long run.

For,when you consider cold caviar has no VAT on it but a hot pasty will, then there is in my opinion anyway an insensitive imbalance in such a policy at least.

As arista pointed out though, Greggs for instance should be able to take this hit, I saw in their window that they were selling sausage rolls hot at 2 for £1, they are normally 65p I think each, so clearly he is spot on in saying that, for if they can do that price now they can do it the future,which would only make their sausage rolls for instance 2 for £1.20 with VAT on.
That's under the price they even used to charge for them.

[Scarlett.]

Seriously?

[Vicky.]

I think people are getting so pissed off by it because it *seems* a bit like all these extra taxes working-middle class people are getting hit with appear to be subsidising the tax cuts for the top earners.

Its just convienient to trivialise it to people moaning about the price of pasties, which does sound silly.

[arista]

Originally Posted by Vicky.

I think people are getting so pissed off by it because it *seems* a bit like all these extra taxes working-middle class people are getting hit with appear to be subsidising the tax cuts for the top earners.

Its just convienient to trivialise it to people moaning about the price of pasties, which does sound silly.

Also we need to see How Much Greggs will
increase a warm sausage roll
at the minute its 85pence
so its well under priced.

[InOne]

Greggs is chav food anyway, never bother with it.

[MTVN]

The Chancellor was in a difficult position though, the European court were putting the pressure on to either have VAT on all hot food or on none of it, no surprise which one he chose

[arista]

Originally Posted by InOne

Greggs is chav food anyway, never bother with it.

Sure
but a Hot Soup when its Cold is OK.


Or good
with a Free Voucher
from a Cheap Newspaper

[Vicky.]

Originally Posted by InOne

Greggs is chav food anyway, never bother with it.

Greggs is awful usually. Peters is worse, I got food poisoning from there

I'm more concerned about the cooked chicken I buy from morrisons being £6 instead of £5

[MTVN]

Greggs is amazing

[arista]

Originally Posted by Vicky.

Greggs is awful usually. Peters is worse, I got food poisoning from there

I'm more concerned about the cooked chicken I buy from morrisons being £6 instead of £5

Morrisons can also keep Prices below.
Thats their style.

They are as good as AsdaWalmart
on that.

[fruit_cake]

I'm not really into that kind of food, I much prefer a box of grapes or a nice apple

[Omah]

Originally Posted by Vicky.

I think people are getting so pissed off by it because it *seems* a bit like all these extra taxes working-middle class people are getting hit with appear to be subsidising the tax cuts for the top earners.

Not "seems", but "is" - we still have the 3.02p per litre hike in fuel duty from August - this will not bother Cameron's Cronies, but, by then, petrol will probably be £1.50 a litre/£7.50 a gallon !

[arista]

Originally Posted by fruit_cake

I'm not really into that kind of food, I much prefer a box of grapes or a nice apple

Morrisons
or
AsdaWalmart for you.

[Niamh.]

I had a bad experience with a pasty once.

[Kizzy]

Do you know what I hate?...snobs
Not born wealthy people from good schools, the ones from working class backgrounds who look down on others like this joker...

http://www.dailymail.co.uk/femail/ar...ed-cheese.html

Im confused about the hot and cold issue... And I actually feel pasties, maccy d's, KFC and such should be taxed.
If you don't want to pay it bring a sarnie from home, you pay 20% on non essential food items in a supermarket whats the difference?

[Marc]

Greeggggggsss!!!

[Ninastar]

I don't see the big deal, I think it's fair enough

[Vicky.]

Originally Posted by kizzy

http://www.dailymail.co.uk/femail/ar...ed-cheese.html

What a twat that woman is

[Shaun]

I'd correct this to warfare but there hasn't been any. Pasties are gross anyway.

[Kizzy]

Originally Posted by Vicky.

What a twat that woman is

She sure is vicks lol!

[fruit_cake]

aww Liz just likes to stirr things up she's all not bad imo

[Me. I Am Salman]

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