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The Parliamentary Under-Secretary of State for Business and Trade (Kate Dearden)
In line with the Government’s regulatory action plan, which seeks to ensure the UK’s regulatory system is targeted, proportionate and supports growth, I am today publishing and laying before Parliament the report on the fourth statutory review of the Groceries Code Adjudicator.
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.
The Government must review the performance of the GCA every three years, and this is the fourth statutory review since the GCA was established. The statutory review is not a review of the code or 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. It was put in place to ensure that large supermarkets do not impose unfair risks on their suppliers which would adversely affect competition and, ultimately, consumers.
The fourth review considered the effectiveness of the GCA in enforcing the code over the period 1 April 2022 to 31 March 2025. A public consultation was held from 13 May to 5 August 2025 to meet the requirements of the Act for the Secretary of State to consult those with an interest in the code. Responses to the consultation, evidence from the GCA annual supplier survey and annual reports and other publicly available evidence enabled the Secretary of State to make an assessment of the performance of the GCA against the measures set out in the Act. These measures were explained in the terms of reference which are included in the report on the review, and in the consultation document, which was placed in the Libraries of both Houses of Parliament on 13 May 2025.
The review has found the GCA to be a broadly effective regulator that made good use of its powers, adopting a proportionate and collaborative approach which usually resolved issues before the need for an arbitration or investigation. However, some respondents called for greater transparency around enforcement and more frequent use of investigatory powers. Despite high awareness of the GCA’s confidentiality obligations, concerns about reprisals persist, especially among smaller or harder-to-reach suppliers, leaving some still reluctant to report issues.
The Government conclude that the GCA has exercised its powers appropriately and continues to provide an important and effective regulatory function that continues to support competition and consumers, but may wish to consider the following:
Stakeholder confidence in the GCA’s collaborative approach: consider the concerns expressed from some stakeholders about the GCA’s limited use of its investigatory powers; and take any necessary action to ensure the basis and effectiveness of the GCA’s regulatory approach in enforcing the code is well understood.
Fear of reprisals deterring suppliers from reporting matters to the GCA: continue considering the concerns of some suppliers about the consequences of raising issues for their businesses; and take any necessary action to ensure suppliers’ concerns are not preventing the GCA receiving sufficient information to effectively enforce the code, with particular attention paid to harder-to-reach suppliers.
Transparency of GCA activity in practice: consider the concerns of stakeholders requesting practical examples; and ensure that suitable information is available to support the GCA’s purpose of enforcing and encouraging compliance with the code. The review also found no evidence to support the need to change the permitted maximum financial penalty the adjudicator can impose following an investigation into non-compliance. It also concluded that the information which the GCA may consider when deciding whether to launch a formal investigation into non-compliance should not be restricted.
The review also examined wider developments in the food supply chain, including the establishment of the Agricultural Supply Chain Adjudicator and the sector-by-sector roll-out of fair dealings regulations. While the GCA model remains effective and its independence is valued, respondents raised concerns about confusion between the GCA and ASCA’s remits, and the need for improved co-ordination, as well as emerging supply chain practices not covered by either regime.
The Government have therefore decided that sponsorship responsibility for the Groceries Code Adjudicator will move from the Department for Business and Trade to the Department for Environment, Food and Rural Affairs. This will streamline oversight, strengthen coherence between the two adjudicators, and support clearer communication with stakeholders.
The report on the fourth statutory review of the GCA has today been placed in the Libraries of both Houses of Parliament.
[HCWS1504]