SIX months after leading the campaign for the government to overturn its much-maligned ‘pasty tax’ a North-East firm is set to start selling hot pasties that are subject to VAT.

Greggs currently bakes savouries in-store before leaving them to cool to avoid charging customers the 20 per cent tax that was levied on hot takeaway food by the Chancellor in 2012 budget.

They made the decision after receiving feedback from customers who were unhappy with being served lukewarm food and wanted their food piping hot.

A spokeswoman for Greggs said it had begun experimenting with increasing the amount of hot food it serves in stores. Although she would not confirm which products were being trialled, they are likely to include Cornish pasties, steak bakes and sausage rolls.

She added: “Greggs already offers toasted sandwiches but is looking at extending the range of food that can be served hot or heated up. If something is served hot, it will attract VAT.”