Osborne in "pasty tax" retreat.

The Treasury has indicated that plans to slap a 20% VAT levy on hot pasties will be reversed. Under the new proposals, VAT will only be charged on food intended to be served hot and not food that is cooked and is then cooling when on display and purchased.

George Osborne has always championed simpler, flatter taxes. He has gone some way in achieving this with regards to direct income taxation. However, this is all certainly a far far away cry from his Tory dreams.