PROPOSED STANDARD RATE VAT ON FRESHLY BAKED FOOD

Motion Text

That this House notes the damaging impact on the North East-based Greggs business and other companies of the decision to impose standard rate VAT on freshly baked food; believes that a one-fifth increase in the prices of their products will deter customers, further reduce economic activity and reduce working hours and jobs, and may also undermine the good work of the Greggs Foundation which funds breakfast clubs and youth groups; further believes that it will needlessly create new anomalies, enforcement difficulties and potential litigation and undermine high street regeneration; warmly welcomes the petition on the issue organised by the National Association of Master Bakers and Greggs, which has won over 200,000 signatures; and urges the Government to use the statutory consultation period to listen carefully to the industry and negotiate a fair deal for all concerned.