Tom Blenkinsop MP today (29th May 2012) called for ‘double dip’ Chancellor, George Osborne, to carry out further U-turns with his controversial Budget following the news that the Government is to reverse plans to impose VAT on pasties and static caravans.
The amendments will still see pasties that are stored in cabinets to remain hot having VAT imposed, and the intended 20% VAT charge on static caravans is being reduced to 5%.
“Two months on from the shambles of a Budget, confirmation that the UK is now back in recession, disastrous local election results, George Osborne has now been forced into two embarrassing U-turns.
“The ‘pasty tax’ was ill-thought out and was a clear example of how out of touch the Tories are with a 20% price hike on a pasty whilst caviar has no VAT applied. The pasty tax amendment comes after the industry told the chancellor what to do. The Chancellor could have avoided the embarrassment by asking the industry first.
“Yet the caravan tax cut has come too late for hundreds of workers at caravan manufacturers in East Yorkshire who are to be laid off as a result of an incompetent government.
“These are only two policies in a long list that many of my constituents want to see reversed. We still need a U-turn for 150 workers at Glanbia Nutritionals Middlesbrough whose jobs are at stake due to a 20% tax hike on nutritional drinks; they need to reconsider the car crash that is regional pay, and of course they need to develop a real plan for jobs and growth.”