The Forum of Private Business (FPB) has labelled the supermarket giant the King Kong of the retail jungle, while farming unions reckon Tesco's £2.25 billion annual profit demonstrates again that there "must be a more equitable share of profits in the food industry".

Both groups are demanding that the competition authorities look closely at the role of supermarkets. Nick Goulding, chief executive of the FPB, said:

"The Competition Commission must tackle the real issues smothering smaller retail shops. For example, the VAT on takeaway food paid by smaller outlets and not the larger ones."

And John Kinnaird, president of the National Farmers' Union Scotland, added:

"The Competition Commission was concerned enough about this issue six years ago to demand a Supermarket Code of Practice. But it has been a waste of time because there is no protection offered to those suppliers who wish to use it."