Levy funding policy 2021/2022
Published 25 June 2021
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GCA levy funding policy 2021/2022
This document explains how the Groceries Code Adjudicator (GCA) has determined the levy on retailers for the financial year 2021/22. This fulfils the requirement of section 19(8) of the Groceries Code Adjudicator Act 2013.
Levy amount for 2021/22
The levy amount for 2021/22 is set at £1.9m, which is reduced from the £2 million raised in 2020/21. This comprises £1 million to be used in the event of a GCA investigation, and £0.9 million for GCA operational costs. The £0.9 million running costs element equates to a levy of £69,231 for each of the 13 designated retailers (Retailers).
Levy methodology
The current GCA, Mark White, was appointed on 31 October 2020, succeeding the former GCA, Christine Tacon. In 2020/21, the former GCA simplified the levy methodology in order not to pre-empt any decision the current GCA may take about how to discharge his functions when he succeeded her. The levy was split evenly between the designated retailers with no variable element.
After consideration, the current GCA has adopted a similar approach for the 2021/22 levy, which was approved by the Secretary of State on 29 April 2021 and will raise equal amounts from each of the 13 Retailers. The flat rate approach may well change in future years depending on circumstances prevailing at the time.
Designation of additional retailers
Any additional retailer designated under the Groceries (Supply Chain Practices) Market Investigation Order 2009 during the financial year 2021/22 will be charged a flat-rate levy payment of 1/13 of the total levy, pro-rated to reflect the portion of the GCA financial year remaining from the date of designation.