Greggs takes new pasty VAT proposal to Treasury

The battle for VAT-free pasties will move to Whitehall today when Ken McMeikan, the chief executive of Greggs, puts his case to the Treasury Minister David Gauke.

Yesterday he told shareholders in Britain's biggest high street baker that the planned imposition of VAT on hot sausage rolls and pasties in October "could have a material impact on our sales and profits".

Mr McMeikan will tell the Treasury that its proposals are muddled because it is so difficult to define what ambient temperature is. Instead he will suggest that VAT should be charged on food kept hot for sale, reheated food or food sold in heat retaining packaging.

He said: "That would be a much more workable solution for the Government because it is very easy to monitor. The current proposals are unworkable."

Greggs said same store sales fell 1.8 per cent in the latest quarter.