An independent body established to resolve disagreements between supermarkets will not have the power to probe claims from whistleblowers or issue fines, it has been revealed.
The government announced its plans for the Groceries Code Adjudicator over the weekend, insisting that the prospect of being investigated - and the negative publicity associated with it - would be enough to ensure retailers abide by the relevant regulations.
While two cross-party parliamentary select committees and the Competition Commission have called for amendments to the coalition’s Groceries Code Adjudicator Bill to bolster the body’s clout, the Department for Business, Innovation and Skills stated that fines should be withheld as a “reserve power”.
“This government is out of touch with farmers, food processors and consumers alike,” said shadow environment secretary Mary Creagh. “They should be standing up for shoppers who are feeling the squeeze and the food producers who are the engine for jobs and growth.”
The news came after the British Retail Consortium and the Federation of Small Businesses expressed concern about the possibility of an increase in business rates from early next year.
