Budget 2012: Greggs sausage rolls to be hit Currently, most hot takeaway food such as meals bought from a restaurant or fish and chip shop are subject to VAT. However, a small number of items have managed to avoid the tax, including rotisserie chickens sold in supermarkets and sausage rolls and hot bakes sold by some outlets, notably Greggs. In the Budget it was announced that: "VAT will also apply, to the extent that it does not already do so, to the sale of hot food, cold food consumed on the supplier's premises, sports drinks and holiday caravans, and to the rental of hairdressers" chairs. This will have effect from 1 October 2012. Greggs, which has more outlets in Britain than any other takeaway company, sells 140m sausage rolls every year. It has successfully argued - following a lengthy and complex VAT tribunal - that the products are baked in store, and just happen to be hot. As a result its hot pastry products have been free of VAT. A source at the Treasury said: "We want to remove all these anomalies. This is a big step towards simplifying the VAT system. They added that anything that a normal consumer would consider hot, would be deemed by the Treasury to be so and subject to the tax. Most tax experts believe the definition of "hot" is above room temperature. It is likely that companies will respond by trying to pass on the higher costs - an extra 20pc on these products - to their customers. Though some experts said that it would be difficult when shoppers were watching their pennies. Lorraine Parkin, head of indirect tax at Grant Thornton, said: "At a time when retailers are operating in a very challenging economic environment, this will further reduce their profits unless they are able to pass the tax increase on to their customers. For many retailers there could be administration costs incurred in programming the VAT liability change in to their accounting systems. With the current squeeze on consumer spending, retailers are most likely to carry the burden. This correcting of anomalies will bring in £160m extra a year to the Treasury by 2016, with a further £190m coming form the closing of VAT loopholes. Other companies affected by the VAT simplification are many of the self-storage companies, such as Big Yellow and Access, which do not charge VAT to their customers, under rules which allow them to be classified them as property companies. Rodney Walker, chief executive of the Self Storage Association, said: "This has come as a complete surprise to the industry. We've started to consult with our members to understand how it will affect us. Static caravans, an their more upmarket versions such as "log cabins" have for many years being zero rated, while their wheeled versions have been subject to VAT. The static versions will now be hit by the full rate of VAT. Labour MP Diana Johnson complained about the impact of imposing VAT on caravans. She said: "This will have a real impact on the economy in Hull because we manufacture a great deal of the caravans in this country. I understand it could almost reduce demand by 30%, another hammer blow. A Greggs spokesperson said: "We do not believe that our freshly baked savoury products should be subject to VAT and we will be making strong representation to the Government regarding the proposed changes."