A Wharfedale MP has hailed an announcement that means supermarket chains which treat suppliers unfairly can be fined.

Competition minister Jo Swinson declared last week that large companies which break the rules can expect to face fines form the Grocery Code Adjudicator.

Greg Mulholland (Lib Dem, Leeds North West) believes that should offer greater protection to farmers and small suppliers.

He said: “Too often, the supplier is squashed under the might of the major supermarkets that dominate our daily shopping.

“That is why there is a need for a strong, independent regulator that has real teeth to stand up for hard-working suppliers.

“We are working hard to create a stronger economy and that means we need to ensure everyone is treated fairly. That is why the beefed-up powers for the Grocery Code Adjudicator are an important step forward.”

Fellow Liberal Democrat Mrs Swinson, making the announcement, said: “We expect fines to be used as a last resort, but the fact that the adjudicator has the power to impose them will send a strong message to retailers that compliance with the code is not optional.”