'Pastygate': Britain's Tories Face a Political Debacle

The British government’s tax on pasties sets off “pastygate”

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By Eddie Buckle and Robert Hutton

April 20, 2012 at 12:55 AM UTC

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This article is part of the April 23, 2012 issue of businessweek.

Local elections in Britain on May 3 will test the popularity of Conservative Prime Minister David Cameron’s austerity budget. Right now it isn’t looking good for the Tories. On March 21, Labour was ahead by five points, and the latest polls show it ahead of the Tories by 10 points, suggesting gains for Labour on local councils next month.

Some of the blame for the Tories’ slump can be traced to Cameron’s pasty (pronounced pahs-ty) problem. Pasties, hot Cornish snacks of meat and veggies baked in pastry, are a favorite grab-and-go meal. When Cameron and his finance minister, George Osborne, slapped a 20 percent tax on hot takeout snacks on March 21, they looked out of touch. Complaints poured in from bakers, including Greggs, the U.K.’s biggest bakery chain with 1,500 shops.