Detail2Leisure Comments on Proposed ‘Pasty Tax’

London, United Kingdom (4th April, 2012) – Detail2Leisure, an established leisure and hospitality recruitment specialist, comments on Chancellor George Osbourne’s proposition of imposing a ‘Pasty Tax’.

Following the recent budget, one additional tax which has gained plenty of comment from the retail and hospitality industry is the so called ‘Pasty Tax’, which means 20% VAT will be imposed on freshly baked products. This has infuriated businesses such as bakery chain Greggs, who will ultimately face a hit to their business if the Chancellor’s proposal goes ahead.

Greggs will be one of many businesses affected by this new tax, as both independent businesses and large national chains will face the dilemma of whether to somehow reduce prices to ease their customers’ pain, or risk a drop-off in demand for their products by passing the price increase on in full.

Detail2Leisure commented: “Whilst the budget as usual threw up many topics for debate, many people have focused in on the ‘Pasty Tax’ as an example of a frankly absurd policy decision from the Chancellor which puts his combined policy of austerity and economic stimulus measures at odds. This particular decision seems to us as one likely to ‘net itself out’, on one hand the government may expect to collect more VAT through this measure but on the other hand if affected businesses choose not to risk losing custom and therefore absorb the hit (whether in-part of fully) this will lead to a reduction in their profitability; resulting in less tax for the government by way of corporation tax, PAYE and National insurance contributions. This could impact businesses’ ability to expand and create more jobs, and is that not what the Chancellor wants to encourage?

“In our view businesses like Greggs, which have been a real success story on the high street over the last few years, play an important part in reducing unemployment and helping the economy to grow. This appears to be a case of the Chancellor and his advisors not thinking things through, as the ‘Pasty Tax’ will be detrimental to both consumers and businesses. We’re fully behind the petition aimed at getting the Chancellor to do a U-turn on this one!”

For more information on Detail2Leisure and their hospitality recruitment jobs, visit their website at or telephone 020 7183 2684.

About Detail2Leisure:

Detail2Leisure is a leading leisure and hospitality recruiter committed to helping jobseekers further their career, providing expert advice and continual support to match a company with the ideal candidate. Detail2Leisure works in partnership with UK leading leisure and hospitality companies so they can provide the very best opportunities in popular restaurants, bars and hotel chains.


Richard Wood
Detail 2 Leisure
Centre Point
103 New Oxford Street
London, UK
Zip: WC1A 1DD
Tel: 020 7183 2684
Fax: 0845 275 2999




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