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Greggs calls on Osborne to scrap hot pasty VAT

28 March 2012 Last updated at 02:08 BST

Last week's budget added VAT on warm meat pies and other hot food.

Food chain Greggs has led criticism of the pasty tax, and its chief executive Ken McMeikan told the BBC's Newsnight on Tuesday "I do fear there are going to be job losses and closures of businesses as a result of this."

Earlier, the Chancellor George Osborne appeared before the Treasury select committee, and when questioned on the issue said he could not remember the last time he had bought a pasty from Greggs.