Greggs boss: Osborne is out of touch

The chief executive of Greggs has accused George Osborne of having "lost touch" after the Chancellor said he could not remember the last time he bought a pasty from the baker.

The Chancellor's Budget closed a loophole that saw some takeaway foods, such as sausage rolls and pasties, escape VAT, a move Greggs boss Ken McMeikan said showed ministers did not appreciate the impact it would have on ordinary families.

Mr McMeikan told BBC2's Newsnight: "I think to a degree they have lost touch with the issue here - that for ordinary, hard-working families putting 20% on to a product that is freshly baked actually is going to make a severe dent in their pockets when they can ill afford it."