Tesco investigated by new regulator

Tesco is to face another investigation into its relations with suppliers, amid concerns that it breached the Groceries Supply Code of Practice. 

The Groceries Code Adjudicator (GCA) joins the Serious Fraud Office and the Financial Reporting Council in investigating the supermarket chain. 

The adjudicator, Christine Tacon, said she had "reasonable suspicion" that the code had been breached.

However, the GCA will not be able to fine Tesco for past offences.

In a statement, Business Secretary Vince Cable said: "Last week I secured the final agreement in government to proceed with legislation to enable the regulator to impose hefty fines for those supermarkets found guilty of mistreating suppliers."

These penalties on large retailers could total up to 1% of their annual UK turnover.

But Ms Tacon told the BBC that despite this legislation, she could not force Tesco to pay a penalty, because the offences would have been committed before she was given the power to impose fines.