Pasty tax U-turn: 'A chaotic way to run a country'

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.

Shadow treasury minister Chris Leslie welcomed the news but accused the government of running the country in a "chaotic" way.

Speaking to the BBC, he said ministers were "forced to listen to the total bewilderment of the public".