Media playback is unsupported on your device

Government does U-turn over 'Cornish pasty tax'

The government is to reverse its plans to impose VAT on Cornish pasties, the BBC has learned.

Ministers have also reduced the intended 20% charge which was due to be levied on static caravans to 5%.

The U-turn from Chancellor George Osborne's Budget follows protests by bakers and caravanning enthusiasts.

Nick Robinson reports.

  • 28 May 2012
Go to next video: Holiday caravan tax U-turn to come?