Troy's Lyon and Brooke back Greggs over 'pasty tax'

Troy Asset Management managers Sebastian Lyon and Francis Brooke have backed bakery chain Greggs to overcome the impact of a change in VAT rules that sparked a political storm last month.

Greggs' shares took a tumble on 22 March, dipping 5.3%, after chancellor George Osborne announced in the Budget he would close a VAT loophole that allowed hot takeaway food to escape the duty. The company, whose shares are up 1.7% year-to-date, responded by saying ministers had "lost touch", with prime minister David Cameron and opposition leader Ed Miliband also later wading into the debate. But Lyon, whose £1.9bn Trojan fund held a 1.8% stake in Greggs as of the end of 2011, said the business has the ability to withstand the impact of any potential tax. "Greggs is a high return, ...