Five questions answered on the first appointed supermarket ombudsman

Christine Tacon named.

The first ever Groceries Code Adjudicator (supermarket ombudsman) has been named today as Christine Tacon. We answer five questions on this newly created post.

What authority will the new supermarket ombudsman hold?

As the first ever Groceries Code Adjudicator Ms Tacon will have the power to investigate anonymous tip-offs from suppliers, name and shame or even fine supermarkets that breach the groceries supply code of practice.

In general, she will police the groceries supply code of practice, which was put in place in 2010 to ensure the top ten supermarkets do not abuse their relationships with suppliers.

What are Ms Tacon’s credentials for the job?

Ms Tacon has a long history working in the food industry. She previously worked at the Co-operative's farming unit for 11 years, as well as holding positions at Mars, Vodafone and Anchor.

She currently holds a number of non-executive positions in the agriculture sector and is chair of the BBC’s rural affairs advisory committee.

About her new post she has said:

"I am honoured to have been given the chance to make a permanent and enduring difference to the groceries sector.

"Coming from a commercial background, I am sure that if we can increase trust between retailers and their direct suppliers, it will lead to greater efficiency and can only have a beneficial impact on the rest of the supply chain."

Why has the government decided to hire a supermarket ombudsman now?

The idea for a supermarket ombudsman was first suggested in 2008 by the Competition Commission as a way to solve disputes between supermarkets and suppliers.

At the time, a two year review of the supermarkets by the Competition Commission resulted in the criticism of the exclusivity arrangements often signed between supermarket chains and their suppliers.

When will Ms Tacon take up her post and how much will she be paid?
Before the role can become official parliament needs to pas the Groceries Code Adjudicator Bill later in the year. Until then she will act as "Adjudicator-Designate".

Ms Tacon will be paid £69,000 per year for her job working over three days a week.

What have government officials said about the creation of this new post?

Consumer and Competition Minister, Jo Swinson, said:

“I congratulate Christine Tacon on her appointment as Groceries Code Adjudicator. This is an incredibly important position in the retail groceries sector making sure that large supermarkets treat their suppliers fairly and lawfully.

“Ms Tacon has a wide range of experience in the food, retail and farming industry and her appointment is a real milestone. Her knowledge of the sector will be of huge benefit, and I’m sure will be crucial in making the Groceries Code Adjudicator a positive and powerful contributor to the groceries industry.”

Adrian Bailey MP, Chair of the Committee said:

“This is a welcome change of policy from the Government, which was called for by the Select Committee and Opposition team in the debate on the Bill. It is also perfectly consistent with the approach taken by the Government in securing as much pre-legislative scrutiny as possible.

“The Select Committee spent many hours taking evidence on this issue and will examine the suitability of the proposed candidate against this evidence and the recommendations it made.”

The first ever Groceries Code Adjudicator has been named. Photograph: Getty Images

Heidi Vella is a features writer for Nridigital.com

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I was wrong about Help to Buy - but I'm still glad it's gone

As a mortgage journalist in 2013, I was deeply sceptical of the guarantee scheme. 

If you just read the headlines about Help to Buy, you could be under the impression that Theresa May has just axed an important scheme for first-time buyers. If you're on the left, you might conclude that she is on a mission to make life worse for ordinary working people. If you just enjoy blue-on-blue action, it's a swipe at the Chancellor she sacked, George Osborne.

Except it's none of those things. Help to Buy mortgage guarantee scheme is a policy that actually worked pretty well - despite the concerns of financial journalists including me - and has served its purpose.

When Osborne first announced Help to Buy in 2013, it was controversial. Mortgage journalists, such as I was at the time, were still mopping up news from the financial crisis. We were still writing up reports about the toxic loan books that had brought the banks crashing down. The idea of the Government promising to bail out mortgage borrowers seemed the height of recklessness.

But the Government always intended Help to Buy mortgage guarantee to act as a stimulus, not a long-term solution. From the beginning, it had an end date - 31 December 2016. The idea was to encourage big banks to start lending again.

So far, the record of Help to Buy has been pretty good. A first-time buyer in 2013 with a 5 per cent deposit had 56 mortgage products to choose from - not much when you consider some of those products would have been ridiculously expensive or would come with many strings attached. By 2016, according to Moneyfacts, first-time buyers had 271 products to choose from, nearly a five-fold increase

Over the same period, financial regulators have introduced much tougher mortgage affordability rules. First-time buyers can be expected to be interrogated about their income, their little luxuries and how they would cope if interest rates rose (contrary to our expectations in 2013, the Bank of England base rate has actually fallen). 

A criticism that still rings true, however, is that the mortgage guarantee scheme only helps boost demand for properties, while doing nothing about the lack of housing supply. Unlike its sister scheme, the Help to Buy equity loan scheme, there is no incentive for property companies to build more homes. According to FullFact, there were just 112,000 homes being built in England and Wales in 2010. By 2015, that had increased, but only to a mere 149,000.

This lack of supply helps to prop up house prices - one of the factors making it so difficult to get on the housing ladder in the first place. In July, the average house price in England was £233,000. This means a first-time buyer with a 5 per cent deposit of £11,650 would still need to be earning nearly £50,000 to meet most mortgage affordability criteria. In other words, the Help to Buy mortgage guarantee is targeted squarely at the middle class.

The Government plans to maintain the Help to Buy equity loan scheme, which is restricted to new builds, and the Help to Buy ISA, which rewards savers at a time of low interest rates. As for Help to Buy mortgage guarantee, the scheme may be dead, but so long as high street banks are offering 95 per cent mortgages, its effects are still with us.