It could be described as a storm in a teacup but the humble JaffaCakeis once again at the centre of controversy after McVitie’s asked a biscuit museum to pull the snack from a display.
The manufacturer took issue with the orangey treat being showcased in a museum devoted to biscuits because, for VAT purposes anyway, it is officially a cake. This fact was settled long ago in a legal battle with the taxman.
The David and Goliath-style row – which some suggested had been orchestrated by McVitie’s to boost sales – has reignited the debate.
Days after the biscuit museum in Bermondsey, southLondon, unveiled the display, McVitie’s sent it a cease-and-desist-style letter requesting “the immediate removal of Jaffa Cakes from your biscuit exhibit”.
However, it sought to sweeten the pill by diluting the legalese with biscuit-based puns.
“We write to you today, not with crumbs of animosity, but with a full slice of firm objection,” it wrote. “Allow us to be clear: Jaffa Cakes are, in fact, cakes. Some would say the clue is in the name on the box.”
McVitie’s and the biscuit museum, officially called the Peek Frean Museum, said they were yet to agree on a resolution. The museum’s curator, Gary Magold, said, “It’s a shame – we’ve had to remove the exhibition for the moment. We’re hoping we can reach an agreement.”
The subtleties of the “is it a cake or biscuit?” debate have likely filled many a tea break but the tax law is clear: biscuits are zero-rated, but as soon as the makers start covering them with chocolate they attract 20% VAT. This wasat the heart of the Jaffa Cakescase, which came to a head in 1991.
HM Customs & Excise (the predecessor of HMRC) said they were biscuits, and that their chocolatey topping was taxable. The manufacturer McVitie’s insisted they were cakes, which are zero-rated. It won, and those smashing orangey bits can be enjoyed tax-free.
This week’s skirmish lit up social media message boards. One poster tried to shut the debate down, stating: “A biscuit goes soft when you leave it out. A cake goes hard. There’s your answer.”
Others questioned whether there was a darker subtext. “They just want to hide how much the thing have [sic] shrunk – shrinkflation strikes again.”
In recent years Jaffa Cake fans have faced diminishing returns. Not only has the number in the box reduced but two years ago the “cakes” shrank in size from 5.5cm to 5cm across. The orange bump became smaller, too.