The chief executive of Britain’s third largest supermarket has pleaded with the new government not to hike VAT on food produce.
Justin King, who heads national chain Sainsbury’s, said that proposed tax rises, as suggested by the Conservative-Liberal Democrat coalition would be counterproductive.
"The coalition [has] announced they will raise the tax band for lowest earners but if they put VAT on food they take all that benefit back," he claimed.
"It is the poorest in our society that spend the most of their weekly money on food so that would be counter-intuitive."
The food industry has backed his pleas, calling for a rethink on a potential food tax hike in the wake of the new parliament, lead by the Conservative party’s David Cameron.
It is hoped that a freeze in VAT, particularly on British-grown produce would significantly assist the UK’s food sector.
Typical Guttridge equipment used in the processing, manufacturing and wider food industry sectors includes; Feeders – metering screw feeders – weighing systems