Pasty tax U-turn: 'We listened to people's views'

The government is to drop plans to impose VAT on Cornish pasties, a charge dubbed the 'pasty tax' after it was announced in George Osborne's budget.

Ministers have also reduced a 20% charge due to be levied on static caravans to 5%, following large-scale protest by bakers and caravanning enthusiasts.

Treasury minister David Gauke told the BBC's Nick Robinson that changes were made after public opposition to the proposals.