Bakers rejoice: UK drops tax on savory snacks

Britain's Chancellor of the Exchequer George Osborne listens to Christine Lagarde, the Managing Director of the International Monetary Fund, unseen, during a press conference in the Treasury in London Tuesday May 22, 2012. The International Monetary Fund has issued a tough assessment of U.K. economic policy, urging the coalition government and Bank of England to do more to boost demand in the economy. (AP Photo Oli Scarff, Pool)

Britain's Chancellor of the Exchequer George Osborne listens to Christine Lagarde, the Managing Director of the International Monetary Fund, unseen, during a press conference in the Treasury in London Tuesday May 22, 2012. The International Monetary Fund has issued a tough assessment of U.K. economic policy, urging the coalition government and Bank of England to do more to boost demand in the economy. (AP Photo Oli Scarff, Pool)

LONDON (AP) ? Britain's treasury has caved in to popular pressure over its plan to impose sales taxes on freshly-baked goods, handing a victory to supporters of the humble pasty.

U.K. finance chief George Osborne had planned to close a loophole which allowed takeout items ? including heated savory snacks such as pies, pasties and sausage rolls ? to escape a 20 percent sales tax.

But the new rules were attacked by political opponents and Britain's tabloid newspapers as an attack on some of the working class's favorite food. Of particular concern was the British pasty, meat and vegetables carried in a pastry crust beloved by students and workers. The Sun newspaper joined bakery chain Greggs in campaigning against the "Pasty Tax".

The government announced its U-turn late Monday night.

Associated Press

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