Government backs down on pasty tax

This evening the Government has announced that it is backing down on its budget proposals for a pasty tax which would have created huge problems for the Cornish economy and Cornish jobs.

I'm delighted that the Government has listened to the views of the pasty makers and pasty eaters in Cornwall and around the UK. This proposal would have taken up to £40 million out of the Cornish economy alone as well as threatening 1100 jobs in the pasty industry and its supply chain. With this announcement, the pasty industry can go back to being the successful manufacturing sector of which Cornwall is so proud.

The new proposals are to only impose VAT on pasties and other baked goods where an attempt has been made to keep them hot. Pasties sold straight out of the oven - as most bakeries in Cornwall do - will continue to be exempt from VAT. This is the solution that the bakers themselves proposed and which I put forward to Nick Clegg alongside Mark Muncey of the Cornish Pasty Association when he was in Cornwall ten days ago.

This has been the little campaign that could. It started on budget evening with a discussion about the likely consequences of an obscure reference to rotisserie chickens in the budget paperwork. It quickly grew to more than 2,500 Facebook supporters within 24 hours. Since then we have seen marches in London and Falmouth, national newspaper front pages and tens of thousands of new supporters.

This campaign would not have been successful without the huge help and support of many thousands of people. But particular thanks to:

• Stephen Gilbert MP and all the Cornish MPs; 
• the Kernow King for organising the finest (but wettest) rally we have seen in a long while;
• John Endacott for providing the hard numbers to back our case; 
• John Ault of the Institute of Cornish Studies;
• Rob Simmons of MK who also noticed it on the first night;
• the Western Morning News and the Sun for their unfailing support; 
• and, finally, to every pasty maker in Cornwall for making the best food known to man. 

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Cornish Lib Dem MPs unite against regional pay

Cornwall's Liberal Democrat MPs Andrew George, Stephen Gilbert and Dan Rogerson have made clear their opposition to varying public sector pay in different parts of the country.

Andrew, Stephen and Dan were among 22 Lib Dem MPs who wrote to the Guardian on Wednesday to oppose regional public sector pay and to welcome the Deputy Prime Minister's assurance this week that the Government would not enact regional pay variations for the public sector.

Commenting, North Cornwall's MP Dan Rogerson, said:

"Clearly the Government is doing its job by keeping public sector pay under review. However, I believe the arguments in favour of any form of regional pay to be flawed in that they take further money out of economically hard-pressed regions of the UK and inevitably help to overheat the economy around London and the South East.

"The Government is right to be working to stimulate jobs in the private sector - but it isn't necessary to change public sector pay in order for these new opportunities to come forward."

The MP for St Austell and Newquay, Stephen Gilbert, added:

"Local pay threatens to institutionalise the structural problems in the Cornish economy where we have lower than national average wages but have higher than national average costs on housing, water and fuel. We need to work to close this gap and we will not do so by a rush to the bottom in public sector pay."

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MPs vote on #pastytax

MPs tonight voted by 295 to 260 against the Cornish Lib Dem amendment to abandon the Government's proposal for the pasty tax which will cost Cornish jobs.

During a debate on the budget VAT measures, there were seven MPs called to speak on the issue of static caravans and five on the subject of church alterations, but only one (Stephen) on the issue of the pasty tax.

The resultant vote was a lot closer than might have been predicted. Labour (sensibly) withdrew their own amendment on the subject which was not so well supported and allowed the vote to take place on the Cornish amendment. All six Cornish MPs backed this amendment - which shows both solidarity and hope for the future that the Government might still listen to reason.

The fight will go on as Dan Rogerson will be taking a group of pasty makers to meet with a Treasury Minister soon to explain why the proposals will hurt Cornish jobs.

But as things stand, I won't be buying Nick Clegg a pasty again. (Pic shows Nick eating a pasty I bought for him while talking to Cornish Lib Dems in Bodmin.)

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Pasty Tax update

While I've been away, there have been some good developments in the pasty tax campaign.

First up, we're approaching 5000 members of the Facebook group.

John Ault, who registered the government e-petition, has also produced a hard copy version to download. If you support this campaign and are able to ask local shops and bakeries to display a copy of this then it can get thousands more people involved with our campaign.

My own local MP, Dan Rogerson, has also joined the campaign.

Stephen Gilbert MP has written to the Chancellor asking for a meeting with pasty manufacturers to discuss the impact on their business and on the Cornish economy of the proposal.

Stephen said:

"The pasty industry employs thousands of people in Cornwall and is worth millions of pounds to the Cornish economy. We believe that adding VAT will undermine the industry and are calling for foods that have significantly advanced Protected Geographical Indication (PGI) status in Europe, such as the Cornish pasty, to be exempt from this proposal."

“These proposals could hit the pasty industry greatly. I’m determined to find a way for the Pasty to be exempt from this tax and protect the industry that brings millions to the Cornish economy and directly employs thousands of local people.”

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Lib Dems promote debate on second home council tax premium in Parliament

Liberal Democrat MPs are promoting a debate in Parliament about the prospect of charging a council tax premium on second homes.

The debate is being put forward by Mid Dorset and North Poole MP Annette Brooke who has written about it on Lib Dem Voice. It is supported by, among others, St Austell and Newquay MP Stephen Gilbert.

The concept of charging a premium was first raised by Cornwall Council Director Tom Flanagan during an appearance before a Parliamentary select committee last year. Although it's not formal council policy, it is certainly an issue worth considering in an area where there are large numbers of second homes and large waiting lists for council housing.

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The curious case of Candidate D*ckh**d

As others have reported, Tory PPC for St Austell and Newquay - Caroline Righton - is in trouble for suggesting that her Lib Dem opponent Stephen Gilbert referred to her as a d*ckh**d.

It appears that she sent out an email reproducing a tweet made by Steve but someone had added the fateful word to the end of Steve's message. I cannot believe it was her - more likely some silly junior member of her campaign team. But her silence on the issue and refusal to apologise means that the focus is shifting onto her and her credibility as a candidate.

Local readers will remember back in May when a leaflet was distributed in Camborne referring to a Mebyon Kernow candidate as a 'greasy haired tw*t'. In that case it was a joke leaflet which mistakenly got printed and delivered to a few homes. That is no excuse however and the candidate, agent and others immediately apologised.

Nevertheless, voters decided the matter for themselves and the MK candidate beat the Lib Dem in the council seat concerned.

Caroline Righton may well find that the voters cast the same opinion on her when it comes to the polls next May.