Business

Pete Rogers (back owner), l-r Mohammed Soliman, Trudy Withers, Laura Shone, Pete Gaine (owner)
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VAT rise could force pasty shop to close

By Victoria Smith
April 05, 2012

A Wokingham pasty shop has warned the Government’s proposed VAT rise on hot food could put it out of business.

Jolly Roger Cornish Pasty shop, which opened in Peach Street last year, has hit out at the plan to add a 20 per cent VAT surcharge on hot pasties sold by high street firms.

Owner Pete Rogers says adding 60p to his pasties could put the independent shop out of business, as its customers rely on good value for money.

He said: “I think it is ludicrous.

“We are struggling because there are not enough people coming into the town. When people are in town, they want good value for money.”

The tax on hot takeaway food was announced in Parliament last week and was immediately opposed by bakery chain Greggs, which has a branch in Broad Street.

Wokingham MP John Redwood waded into the row, saying that just because some Tories have not recently eaten a pasty, it does not mean they are out of touch with how others live.

He said the lifestyle of an MP involves eating a silver service dinner in the Commons dining rooms in the evenings.

He said: “It is modelled on country house life in the England of the 1930s, and similar to Oxbridge High table or officers’ mess dinners in the military.

“I daresay many Labour MPs also own detached houses which still sport dining rooms, or were originally built with such features.

“MPs who say some MPs are out of touch because of their lifestyles should remember their own.

“On a minimum of £65,000 a year no MP shares in personal experience the money worries of someone on £10,000 or £20,000 a year facing the current inflation rate.

“Living an MP’s life on an MP’s income does not, however, prevent a good MP understanding how others live and representing them well.”

Mr Redwood added he has not bought a pasty for a long time, but he does not think it “prevents me from representing pasty eaters”.

The Government has explained the VAT charge will bring the cost in line with VAT on takeaway burger bars, fried chicken restaurants and fish and chip shops.

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Most recent user comments 11 of 11

Cornish Pasties have to be made in Cornwall. If this shop is serving warm pasties then by definition they are being heated for sale and so should be subject to VAT.

PoneRana, Wokingham
07/04/2012 at 13:10

The last "cornish" pasty shop in town closed down; this one only opened in september!

Cant be easy running a business like this at a time like this. This should be phased in at the very least.

mr jolly
06/04/2012 at 18:05

Far point, getting a bit carried away.

There are enough local issues that will dictate my vote ...

Peter Turner
05/04/2012 at 17:37

You could liken this to the Brown Bin argument from WBC...... 'We've been subsidising this for years and now it's time for you to pay. Deal with it.' I'm all for VAT harmonisation (e.g. is a Jaffa Cake a cake or a biscuit?). It'll be interesting to see if the Government makes an exception for the Pasty because of the bad press, whilst WBC stands firm on the 'additional' cost of green waste collection.

Ivor Biggun, winnersh
05/04/2012 at 13:25

Ivor Biggun - I understand your point, but the fact is that people have now become accustommed to what they pay for a pasty, and what they pay for a bag of chips. People think of pasties and fish and chips as in the same bracket because of their price. Maybe things would be different if pasties were more expensive in the first place. Pasties (when done correctly, as with Jolly Rogers') also have far better ingredients and have had alot more effort spent on creating them. They are also generally not exactly sold in the huge numbers that chippies can shovel out bags of chips at.

alex_f, Wokingham
05/04/2012 at 13:06

Far Far Away - totally agreed, the image of Ed Miliband feeling the absolute need to give an interview in front of a Greggs outlet, and be seen eating a pasty with Ed Balls, almost made me run into a brick wall.

alex_f, Wokingham
05/04/2012 at 13:01

Why should ANY food item have VAT on it?.......Oh yes, I remember, because every government of every political colour always spends more than it earns and always wants to do more and more whereas, most people want the bloody state to do less and to leave us in peace to live our own lives as we see fit!

Tonk, Wokingham
05/04/2012 at 12:33

I agree. Let's make the May elections a local election and get away from voting on national issues. There are major local issues that need to be addressed in the May elections not least the rape of the remaining green space in Wokingham.

PoneRana, Wokingham
05/04/2012 at 12:12

Peter - Please remember that the 3rd May elections are local elections only - This is a central government issue.

I understand the argument about other types of takeaway - However this is a step too far. For me it's a defining moment - Edwina and her eggs, Ratner and his "C***" jewellery, Maude and his Jerry can, now we have Osbourne and his Pasty. The fairly balanced budget has been totally messed up and this is something that will be remembered

I suspect the government must be praying for the Easter break - so many mistakes in a short time, Dinner with David, Pasty's, A petrol crisis that wasn't, plans to read every email and text, private court cases (or not), A popular paper with a real grudge - and so it goes.

What is sickening is not the really the VAT on the product, - Food items that attract VAT and those that don't have always been an obscure sub - But the rush of MP,s and dignitaries standing up to buy a pasty, quite clearly most haven't had a hot pasty for lunch for many years, - that's fine but don't pretend otherwise.

I do think though that this issue would probably have increased Pasty sales.

Far Far Away, Thames Valley
05/04/2012 at 11:17

Why should pasty shops enjoy this concession over a chippy? when Give customers the option to heat their own pasty in a michaelwave, otherwise charge them 60p.