23 Scottish Business Groups Urge Swinney to Scrap Food Price Cap
Updated
Updated · BBC.com · Aug 31
23 Scottish Business Groups Urge Swinney to Scrap Food Price Cap
3 articles · Updated · BBC.com · Aug 31
Summary
Twenty-three Scottish business groups told First Minister John Swinney to drop his planned legal cap on some food and drink prices before he unveils his programme for government on Tuesday.
The groups said a statutory cap would not curb food inflation because higher production, refrigeration and distribution costs are driving prices, and warned businesses would have to absorb or shift those costs elsewhere.
Scottish Retail Consortium deputy head Ewan MacDonald-Russell called the plan an “appallingly terrible idea,” citing Hungary as a case where caps led to shortages, cheaper imports and friction between retailers and shoppers.
The proposal would force large supermarkets to limit prices on essentials such as milk, eggs, cheese and rice, but small shops could be left less competitive if they are outside the scheme.
Any cap would face a year-long legislative process, likely need an exemption from the UK Internal Market Act 2020, and could still be challenged in court as ministers prepare a consultation and food summit.