Concerns have been raised over the balance of power in the grocery supply chain after Christine Tacon's look into Tesco's accounts and payments.

Results from probing into the supermarket chain's practices have shown that retailers hold too much control over the UK supply chain, reports the Financial Times.

As groceries code adjudicator, Ms Tacon found that Tesco had deliberately delayed or underpaid on its invoices for its suppliers to meet its own financial targets.

Although Tesco has said that it will be making changes to improve disputes over payments, Sebastian Calnan, a consultant lawyer with EMW, said that suppliers will accept defeat because they are at the mercy of supermarkets.

He commented: "Undoubtedly the largest link in the food chain is the commander of the prices."

As a result, many suppliers may stop providing to UK grocers and move to export their goods instead, according to Mike Cherry, policy chairman at the Federation of Small Businesses.