The boss of leading bakers Greggs has announced it will fight Budget proposals that will see sausage rolls and pasties hit with VAT.

Chancellor George Osborne announced the plans this week to "remove anomalies" from the tax system, which currently sees VAT charged on hot food.

Greggs and other bakers have previously argued that their products are kept warm from the oven rather than served hot, so avoided the 20% tax.

Greggs' chief executive Ken McMeikan said the change was unexpected by the baking industry.

In an interview with the North East-based Journal newspaper, he said: "We want the Government to accept that this was an ill-thought-through move which will harm growth and impact on businesses, individuals and act as counter-productive to the Government's stated aims of growing the economy."

Since the announcement was made £30m has been wiped off the Newcastle-based bakers' share price.

Mr McKeikan will lobby hard for a re-think over the next six weeks, and urged businesses and consumers to argue the Government has made a mistake.

The Journal has launched a Save Our Savouries campaign in support of bakers.

A similar scheme has started in the South West, home of the Cornish pasty.