Pastygate U Turn

Loyal readers will recall the pastygate affair, when Osborne put VAT on pasties.

Following a complete drubbing by the media and the electorate, the government has now changed definition of hot food.

Food such as sausage rolls or pasties sold on shelves - that is, cooling down, rather than being kept hot in a special cabinet - will not be liable for VAT. The definition of a "hot" pasty is being altered to allow the reversal.

In other words the government has performed a spectacular and humiliating U turn.

Unsurprisingly shares in Greggs have risen by 9%.