'Embarrassing' switch on food price policy, claims SNP
Talks take place between supermarkets and ministers over price of goods such as eggs and bread amid concerns over rising inflation
The UK government's attempt to secure a price limit on some groceries has been described as "embarrassing" given its "bizarre " attacks on the SNP for wanting to bring in a similar policy.
Talks are being held between supermarkets and the UK government amid concerns over rising inflation, with hopes that the price on some goods - such as eggs, milk and bread - could be capped in return for easing some regulations, such as packaging policies and potentially costly changes to healthy food rules.
It comes after First Minister John Swinney pledged a mandatory cap on the prices of between 20 and 50 essential items in large supermarkets if the SNP was re-elected.
Mr Swinney’s plan was described as “undeliverable” by a UK government minister, who claimed it would also cost “millions of pounds” in legal bills.
Meanwhile, shadow chancellor Mel Stride claimed Mr Swinney’s plan could lead to rationing.
After it emerged that the UK government is in talks about limiting the price of some food, the SNP described the “embarrassing revalation” that Labour was planning its own policy.
SNP MSP Alex Kerr said: “After weeks of launching bizarre attacks on the SNP for wanting to ensure a fair price for hard-pressed households, the Labour Government has been caught trying to do exactly the same thing. They are in a complete mess.
“This embarrassing revelation is typical of this Labour UK Government that is utterly distracted by infighting and chaos – the question is why did they oppose the SNP on this in the first place?”
Meanwhile, supermarket bosses have said any price caps on the cost of essential food would be “completely preposterous” and “idiotic”.
M&S boss Stuart Machin said he had “no direct communication” with the Government about the reported proposals and called for ministers to ease regulation.
“It’s completely preposterous.
“I don’t think the government should be trying to run business.
“My advice is that the government should reduce some of the tax and regulatory burden and free us up in a very competitive market.
“With food inflation at 3 per cent, I think it actually demonstrates that food retailers are taking a big responsibility to try and minimise passing through prices.”
He stressed that the business is making a loss on the sale of a number of essential products, such as milk, bread and bananas.
Former Asda chairman Lord Stuart Rose branded a potential cap as “stuff and nonsense”.
He told broadcasters: “This smacks of state control. It is idiotic. It is dangerous and it will never work.”
Nevertheless, Treasury minister Dan Tomlinson said “this isn’t something we’re looking at” when asked if there had been conversations with supermarkets about bringing in price caps.
He told broadcasters: “The Government is not looking at doing this.
“Instead, what we’re doing is looking across the economy at what are the different ways that we can help households.”
But he later appeared to muddy the waters as he explicitly ruled out a “mandatory price cap” on supermarket essentials.
He said: “Of course, the government is going to be having conversations with supermarkets about what more we can do to support households, but no, we are not going to be implementing a mandatory price cap.”
Treasury minister Lord Livermore went further, telling the House of Lords the Government will “never advocate” for price caps.
He told peers: “It’s not for the Government to tell supermarkets how to do their jobs.”
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