Tesco became the second British retailer in history, after Marks and Spencer, to post profits in excess of £1 billion.

The biggest supermarket retailer in the UK is making around £3 million in profit a day, and accounts for 25 per cent of grocery sales in Britain.

Some consumer and farming groups reacted angrily to the news, with the National Consumer Protection Council calling for price cuts to be passed on to Tesco's customers. The Small and Family Farms Alliance accusing the retail giant of being a "new baronial class".

The NFU supported the company, saying that farmers had to work with the retailers, not to "go to war" against them.

The Liberal Democrats have called for the establishment of an independent retail regulator.