Tesco’s accounting scandal has created a culture of fear among its buyers and is impeding the running of the business, according to one of its major suppliers.

The Independent quoted a source at one of Tesco’s largest suppliers: “The confidence at Tesco is catastrophic. There’s no leadership and those in charge know nothing about Tesco.

“It’s not business as usual, because there’s no one to talk to any more. A load of people who you’d actually speak to are gone and the ones still there are in meetings all the time.

“Everyone feels as though they are under suspicion, with one eye over their shoulder.”

Eight Tesco directors have been suspended since chief executive Dave Lewis revealed it had overstated its profits by £250m. These include UK chief executive Chris Bush and UK finance director Carl Rogberg.

Deloitte and law firm Freshfields are investigating the accounting issues. However, the supplier source said that was leading to the business being run in a “legalistic way, not a commercial way – and that’s not good for business.”

Tesco boss Dave Lewis is poised to speak to the City to reveal the grocer’s interim results for the first time since being parachuted in last month.

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