David Cameron's attempt to paint himself as a man of the people saw him narrowly avoid accusations of a gaffe yesterday as he waded into the escalating "pasty tax" row.

However, the Prime Minister's efforts did manage to attract criticism from a major producer whose food he praised.

He faced claims that plans to slap 20% VAT on hot snacks from supermarkets and bakeries showed he did not understand the plight of hard-working families.

The Conservative leader's intervention followed negative headlines overnight about Chancellor George Osborne's admission he could not remember the last time he ate a pasty.

Mr Cameron, by contrast, told reporters that not only had he eaten one recently, but it was "very good too".

Initially, he appeared to put his foot in it by claiming he had bought the snack from the West Cornwall Pasty Company, which offers a Vegetable Provencal pasty and one made of steak and Stilton, at Leeds station.

But his claim was thrown into doubt within hours when it emerged there had been such a shop at the station – but it had closed in 2007.

In the end Network Rail, the quango, was forced to step in to offer clarification, saying that there was a Cornish Bakehouse there until last week.

By then, Gavin Williams of the West Cornwall Pasty Company had entered the debate, accusing the Prime Minister of not understanding the impact the Budget change would have on the industry.

He said: "What we really need from Mr Cameron right now is not advertising but clarity and leadership.

"We would have hoped that if he had been rubbing shoulders with our customers he'd better understand the impact that this move will have on them, and our sector and all the great suppliers within it."

His firm estimates more than 13,000 jobs were sustained by the Cornish pasty industry alone.

The row came as the SNP dubbed the tax the "Forfar Bridie tax". It pointed out the tax would apply to all hot takeaway food, and called for a U-turn.

For their part, Labour leader Ed Miliband and Shadow Chancellor Ed Balls sought to exploit the Government's difficulties.

The two men stopped off at a branch of high street bakery chain Greggs, which saw millions wiped off its share price when the Budget was announced, to buy sausage rolls during a visit to the Midlands.

"The Government is hitting people's living standards in every way they can," said Mr Miliband.

"Not just fuel duty going up, child benefit taken away, tax credits being cut, now even putting 20% on the cost of pasties and sausage rolls.

"It just shows how out of touch this Government is, and it shows that we've got a Budget that is hitting millions of people while cutting taxes for millionaires."

Greggs' Stranraer-born chief executive Ken McMeikan waded into the row, saying ministers had "lost touch with the issue here – that for ordinary, hard-working families, putting 20% on to a product that is freshly-baked, actually is going to make a severe dent in their pockets when they can ill afford it".

The Prime Minister had argued that the charge would be fair to other businesses, including burger bars.

The National Federation of Fish Friers agreed, arguing the move would create a "level playing field".

Speaking to reporters at 10 Downing Street, Mr Cameron had earlier said that he had wavered over whether to have a small or a large pasty in Leeds.

"I have got a feeling I opted for the large one, and very good it was too," he said.

Downing Street aides later insisted Mr Cameron regularly eats pasties when travelling.