Greggs Boss Prepares For Treasury Meeting Over 'Completely Confusing' Pasty Tax

PA/The Huffington Post UK  |  Posted: Updated: 16/05/2012 11:06

The chief executive of bakery chain Greggs stepped up his fight against the "completely confusing" pasty tax on Wednesday ahead of a meeting with the Treasury.

Greggs boss Ken McMeikan claimed the chain's customers have received "universal support" for their campaign against the Government's plans to extend the 20% VAT tax to hot takeaway food – significantly increasing the price of the chain's hot pies, pasties and sausage rolls.

Mr McMeikan said the 300,000 signatures on its petition objecting to the tax proposal were an indication of the high level of customer support.

Mr McMeikan will present his company's own proposal tomorrow to David Gauke, Exchequer Secretary to the Treasury, which it claims is "simpler and more workable".

Greggs would prefer to see VAT charged on all food kept hot for sale in a heated environment after cooking, all food re-heated to order and all food supplied in heat-retaining packaging, which would leave fresh bakery food unaffected.

He said: "Our customers think that this is the wrong tax. They're completely confused by it. At a time when the consumer is under enormous pressure, our customers remain clear - this is something they do not want."

Mr McMeikan said Greggs had the support of the National Association of Master Bakers, which represents around 1,000 smaller retailers, and the Cornish Pasty Association.

The bakery chain, which has 1,600 shops in the UK, also said today it had endured six "disappointing" weeks of trading as a result of recent heavy rainfall.

The group opened 25 new shops in the period and is on track to open a net 90 new shops by the end of the year. The baker said it also completed 42 shop refurbishments in the period, in line with its plan to refit a total of 100 to 120 shops this year.

The group recorded a 1.8% drop in like-for-like sales in the 19 weeks to May 12, but its aggressive store-opening programme helped lift total sales by 4.3% in the period.

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The chief executive of bakery chain Greggs stepped up his fight against the "completely confusing" pasty tax on Wednesday ahead of a meeting with the Treasury. Greggs boss Ken McMeikan claimed the ...
The chief executive of bakery chain Greggs stepped up his fight against the "completely confusing" pasty tax on Wednesday ahead of a meeting with the Treasury. Greggs boss Ken McMeikan claimed the ...
 
 
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Mickey Mouse 1
There are no lies or deceit on a chess board.
10:28 AM on 05/17/2012
Tell 'em to get stuffed!
01:10 AM on 05/17/2012
The bakery chain, which has 1,600 shops in the UK, also said today it had endured six "disappointing" weeks of trading as a result of recent heavy rainfall.

Sorry but is it me if it is cold and wet I hardly think A cold cheese sandwich or a salad is going to spring to mind - A hot Pasty yes - I'm just surprised that Osbourne did apply a tax to Hot Chips (Ooops to late Gov release of the day the Fat Tax (Think McDonald's might have a little something to say about that

What next tax on sugar (Pepsi, Coke and T&L be warned

what do you think started the American Revolution - Boston Tea Party anyone - No representation Give your areas elected MP back your ballet papers - marked none of the above/not fit for purpose
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Ben Wilson
What's the story mourning Tories?
05:39 PM on 05/16/2012
I'd just threten to close the whole business down if the Pasty Tax happens. It's an empty threat that will work.
05:15 PM on 05/16/2012
What we want is a representation of working class people in Government ,people who actualy live in the real world ,and have to budget and save to pay their way, instead of living off money screwed out of others
04:19 PM on 05/16/2012
I find it hard to believe that an educated millionaire can stoop so low as to tax a pastie . It beggars belief . No government for years has been able to run this country on the mega billions they rake in , because there's too many upper crust people in positions where they can give themselve mega bonuses mega expenses , help themselves to any monies for any reason any excuse., When some one is able to stop all that there'll be enough money to run the country.
03:52 PM on 05/16/2012
This comment will be removed .
03:34 PM on 05/16/2012
Hey , wmsmith1 you slipped that subliminal in nicely , N is a long way from R on the keyboard ,so it can't of been a typo ; I think the term " mess oven " just about sums this story up ( not to mention our present & previous governments ) !
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Fozwords
Abandon hope when you post on here
03:25 PM on 05/16/2012
Why don't Greggs give the pasties away but charge the old price for a bag to put it in.
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SGillLondonUK
SCOTLAND IS NOT ENGLISH PROPERTY
04:00 PM on 05/16/2012
Because of the tax on carrier bags ?
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HUFFPOST SUPER USER
Fozwords
Abandon hope when you post on here
04:09 PM on 05/16/2012
I was talking about small paper bags, not taxed, unlike your brain............
04:57 PM on 05/16/2012
Then you would be taxed on the' take away' hot bag
05:02 PM on 05/16/2012
Thats a great idea !
02:38 PM on 05/16/2012
Lets forget about the companies profits for a moment. Lets consider a family on a cheap holiday because they cannot afford to stay in hotels and eat in restaurants. The whole family can have a cheap and nourishing hot takeaway meal such as a pasty and enjoy the food and sit outside somewhere as if having a picnic. Now add 20% and the meal is not longer cheap and such parents will cut back, maybe even not take their children on a cheap holiday. The end result is not good for anyone, the employer, the staff or the customer . Yes VAT is a complex issue and maybe it need to be sorted so all businesses are on a level playing field but now is not the time. Now add the so called Granny Tax and who are being effected by these changes in tax issues. It is certainly not the better off and it will not effect me, I can afford to pay the extra 20% but many cannot and this is certainly not correct. I have voted Tory all my life but if these two changes go through then I will not vote for them again but also I will not vote for the party who got us into this mess oven the past 13 years.
03:06 PM on 05/16/2012
Totally agree with you.
01:28 PM on 05/16/2012
Divide and rule is working a treat for the tories i see
12:49 PM on 05/16/2012
just shut your shops down matey put all ur staff on dole and let the goverment foot the bill take your money retire and live happily ever after
01:58 PM on 05/16/2012
this man is trying to save jobs not cut and run
03:52 PM on 05/16/2012
all is has to do is threaten to close his shops and put the wind up these money grabbing b**?*****ds
12:48 PM on 05/16/2012
I bought a hot pasty on Friday,but when I went to pay for it it was cold !.I asked the lady to give me another one but she said that she couldn't,and that the pasty was hot when she had taken it out. I said that it was just luke warm,she said take it or leave it,but for 20p she would put it in the microwave for me, that's double pasty tax.
05:09 PM on 05/16/2012
lol...love your story !
07:07 PM on 05/16/2012
thank you ,just bored !.
12:33 PM on 05/16/2012
Go for it Kenn And very good luck...I buy loads of items from your shops and I am not overweight !!
05:08 PM on 05/16/2012
It's not just affecting Greggs ,our local Chinese take away ( opened in 1976 ) has closed because of this tax ! I totally despair what the Government is doing to our life and country !
12:32 PM on 05/16/2012
I never did believe in this companies stellar performance, now it will be a struggler like all the other UK businesses. If you're doing well, keep your mouth shut and keep the story small otherwise somebody [ i.e the government ] will come and steal your money.
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12:30 PM on 05/16/2012
Greggs are just angry they have lost a 20% competitive advantage over other businesses that sell hot food.

The only thing to be hurt here I suspect is Greggs profit margin

Tough - pay up.