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Doughnut tax hole in the Budget

The hated pasty tax could soon be added to the cost of doughnuts, it has emerged.

The tasty pastry could be hit by Chancellor George Osborne’s much maligned tax after Lib Dem MP Stephen Gilbert said VAT could be slapped on sugary snacks if they are served up warm, in a detail which could see mince pies, samosas and pretzels also affected.

Mr Gilbert urged the Treasury only to tax food that is kept hot in a cabinet rather than freshly baked items.

MPs yesterday supported the call in a special pasty tax debate prompting shadow treasury minister Cathy Jamieson to state, in The Sun: “This doughnut tax is yet another hole in George Osborne’s Budget."

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