An independent ombudsman is to be appointed to monitor supermarket-supplier relationships and resolve disputes, according to Competition Commission (CC) proposals released in the last hour.

Suppliers will be better protected by the new adjudicator, which will have the power to award compensation and will uphold a tougher version of the Supermarket Code of Practice.

The Supermarket Code of Practice, which sets out how supermarkets should treat their suppliers, was created in response to the CC’s last major investigation into the grocery sector in 2000. Under today's proposals, which follow the CC’s two-year inquiry into the UK grocery market, retailers will have to employ compliance officers to make sure the code is followed.

There will also be measures to stop supermarkets restricting who can build on land they sell off. Suggestions to change the planning law could give shoppers a wider choice of supermarkets in their local area.

Interested parties now have a fortnight to comment on these recommendations before publication of the final report in April.

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