Volte-face on pasties and caravans raises EU spectre

In what has been described as a u-turn, but is really a major change in direction, the government has reconsidered its position concerning VAT on hot food and static caravans as originally unveiled in the Budget statement.

Now, instead of seeking to apply tax to all food sold at above the ambient temperature, it will apply tax to all food which is heated up for a purpose other than being cooked, or is being kept warm in any way after it has been cooked. Those products which are taken out of the oven and allowed to cool naturally will continue to be zero-rated (assuming they are zero-rated generically).