Cornish pasties
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Campaigners welcome pasty tax u-turn

29 May 2012 Last updated at 14:11 BST

The government is to reverse its plans to impose VAT on Cornish pasties, the BBC has learned.

The U-turns from Chancellor George Osborne's Budget follow protests by bakers and caravanning enthusiasts.

The government said it showed it was listening, but Labour said the VAT rises had been "ill thought-out".

Chris Mason reports.