Pasty Producers Urge Treasury Rethink

The new ‘pasty tax’ affects products that were previously VAT-free, including pasties, sausage rolls and hot-cross buns. The proposed tax would come into effect in October.

Labour leader Ed Milliband has put his support behind the Association, and plans to hold a vote in the House of Commons on 19th April.

Mark Muncey, chairman of the Cornish Party Association, released an official statement on behalf of the Association. It said, “We are very concerned about the possible disproportionate effect the introduction of this tax will have on the Cornish economy. Twice as many jobs per capita are connected with the food industry in Cornwall than the rest of the UK.

“Collectively, the Cornish pasty industry accounts as one of the largest employers in Cornwall. Therefore, this is going to affect a greater percentage of the Cornish economy than the rest of the country.”

“We don’t believe the practical implications of introducing this tax have been thought through. We are also disappointed that there has been no discussion with representatives of the key food sectors that will be affected ahead of the Treasury’s announcement.

“Many of our retail members anticipate a 15 – 20% reduction in retail sales and some are already talking about the need to close marginal shops, which will lead to job losses.   Having spent years trying to encourage and bolster the Cornish economy via the food industry, it appears counter-productive to now introduce this tax.”

“We have sought advice from our local politicians, and we have the support of our Cornish MPs, but we urgently need a dialogue with the Treasury to discuss other solutions,” he added.