It’s another blow to the Conservative-led government, as George Osborne has agreed to modify its controversial budget proposals to extend VAT on takeaway hot pies - in a move that was labelled by Labour as ‘U-turns from a shambolic government’. After a protest orchestrated by Greggs, the nation’s largest chain of high-street bakers, the government has signalled a retreat on tax rises on pasties and caravans. The climbdown over pasty tax will cost the Treasury ÂŁ70 million annually. Now,…

David Cameron’s efforts to justify Tories’ move to slap 20% VAT on hot pasties sold by high street firms like Greggs came to a crumbly end when his claims of eating a Cornish pasty at Leeds railway station were exposed as untrue. Defending the pie tax, the Prime Minister at a Downing Street press conference, pushed that government’s motive behind the sales tax was to bring freshly baked goods in…