Tesco has denied operating a two-tiered pricing policy in Scotland, after hundreds of items at the supermarket giant were found to cost significantly less north of the border.

Prices on a range of 800 items were found to be 5% lower in Scotland than elsewhere in Britain.

Tesco said the discrepancy, which would breach an agreement with the competition authorities over national pricing, was due to a “technical error”.

“A relatively small number of products at our Scottish stores were incorrectly priced by a small amount,” the supermarket said. “This was caused by a technical error as our Scottish stores are being moved to a new pricing software system. The error has now been corrected.”

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