Groceries Code Adjudicator: Statutory Review
(1 day, 18 hours ago)
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The Parliamentary Under-Secretary of State for Business and Trade (Justin Madders)
As part of the fourth statutory review of the Groceries Code Adjudicator, the Department for Business and Trade will today publish a consultation seeking the views of stakeholders on the performance of the GCA.
The GCA was established by the Groceries Code Adjudicator Act 2013. Its role is to monitor and enforce the groceries supply code of practice, which the UK’s designated large grocery retailers must comply with when dealing with their direct suppliers.
Section 15 of the Act requires the Government to review periodically the performance of the GCA. The first review covered the period from the creation of the GCA in June 2013 to 31 March 2016. The second review covered the period from 1 April 2016 to 31 March 2019 and the third statutory review covered the period from 1 April 2019 to 31 March 2022.
The statutory review is not a review of the code nor of the remit of the GCA. The code is a competition measure owned by the Competition and Markets Authority as the UK’s independent competition authority.
The fourth review will look back over the period 1 April 2022 to 31 March 2025 and seek views and evidence which will allow the Secretary of State to make an assessment of the performance of the GCA against the measures set out in the Act. These measures are explained in the terms of reference.
As part of the consultation, the Government are interested in seeking views on how the GCA is operating following the establishment of the Agricultural Supply Chain Adjudicator and any evidence of unfair contractual practices that may have a negative impact on parts of the supply chain not covered by the code or the fair dealings regulations made under the Agriculture Act 2020.
The Groceries Code Adjudicator Act requires the Government to consult with the following:
the GCA;
the Competition and Markets Authority;
the retailers subject to the code;
one or more persons representing the interests of suppliers;
one or more persons representing the interests of consumers; and
any other appropriate person—the Secretary of State has not identified any specific person or persons here and welcomes contributions from any interested person.
The invitation to submit comments and evidence can be accessed at https://www.gov.uk/government/consultations/groceries-code-adjudicator-gca-statutory-review-2022-to-2025 and stakeholders have until 5 August 2025 to respond. Following this, the Secretary of State will analyse the responses. A report on the Secretary of State’s findings will then be published and laid before Parliament.
The terms of reference for the GCA review have today been placed in the Libraries of both Houses of Parliament.
[HCWS629]
Notification of Contingent Liability
(1 day, 18 hours ago)
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The Chancellor of the Exchequer (Rachel Reeves)
The independent Monetary Policy Committee of the Bank of England decided at its meeting ending on 3 February 2022 to reduce the stocks of UK Government bonds and sterling non-financial investment-grade corporate bonds held in the asset purchase facility by ceasing to reinvest maturing securities. The Bank ceased reinvestment of assets in this portfolio in February 2022 and commenced sales of corporate bonds on 28 September 2022, and sales of gilts acquired for monetary policy purposes on 1 November 2022. The sales of corporate bonds ceased on 6 June 2023, with a small number of outstanding corporate bonds reaching maturity on 5 April 2024. Therefore, the APF is now comprised solely of gilts.
The Chancellor at the time agreed a joint approach with the Governor of the Bank of England in an exchange of letters on 3 February 2022 to reduce the maximum authorised size of the APF for asset purchases every six months, as the size of APF holdings reduces.
Since 12 November 2024, when the maximum authorised size of the APF was last reduced, the total stock of assets held by the APF for monetary policy purposes has fallen further from £654.5 billion to £619.7 billion. In line with the approach agreed with the Governor, the authorised maximum total size of the APF has therefore been reduced to £619.7 billion, comprising entirely of gilts.
The risk control framework previously agreed with the Bank will remain in place, and His Majesty’s Treasury will continue to monitor risks to public funds from the APF through regular risk oversight meetings and enhanced information sharing with the Bank.
There will continue to be an opportunity for HM Treasury to provide views to the MPC on the design of the schemes within the APF, as they affect the Government’s broader economic objectives and may pose risks to the Exchequer.
The Government will continue to indemnify the Bank, the APF and its directors from any losses arising out of, or in connection with, the facility. Provision for any payment due under the liability will continue to be sought through the normal supply procedure.
A full departmental minute has been laid in the House of Commons providing more detail on this contingent liability.
[HCWS630]