Land Covenants: Supermarket Chains

Lord Kirkhope of Harrogate Excerpts

Wednesday 4th February 2026 Lords Chamber

Asked by

[Lord Kirkhope of Harrogate]

To ask His Majesty’s Government what discussions they are having with the Competition and Markets Authority about updating the rules relating to land covenants on supermarket chains.

[Lord Kirkhope of Harrogate (Con)]

My Lords, I beg leave to ask the Question standing in my name on the Order Paper and, in doing so, I declare my interest as a holder of a number of loyalty club cards with various supermarket chains and also my membership of the Co-op.

[The Minister of State, Department for Business and Trade and HM Treasury (Lord Stockwood) (Lab)]

My Lords, the Competition and Markets Authority is currently assessing whether additional retailers should be designated under the controlled land order and brought within its scope. We continue to engage with the CMA and will consider its findings carefully once it has concluded its assessment later this year.

[Lord Kirkhope of Harrogate (Con)]

I thank the Minister for that incomplete reply. The situation is absolutely unsatisfactory in that the seven main supermarket chains have been obliged to adhere to strict requirements on restrictive covenants in their area, preventing others from opening shops nearby, whereas newcomers such as Aldi and Lidl, which have now grown to an enormous size—a commensurate size—are not required to fulfil those obligations. That surely is wrong. If the Competition and Markets Authority has any role in life, surely it must be to have a level-playing field in retailing.

[Lord Stockwood (Lab)]

I am assuming from the noble Lord’s question that he does not have Aldi and Lidl advantage cards as well. Just to acknowledge, the CMA is currently doing its work, including on a consultation to get feedback on how Aldi and Lidl should be treated. We acknowledge that the argument for exemption does distort the market, but the independence of the CMA must be respected. I share the noble Lord’s views that it seems right on face value that Aldi and Lidl should be brought into that same regime.