Business groups urge Swinney to scrap food price cap

Twenty-three organisations representing retail, food and drink production, manufacturing, and distribution businesses in Scotland have addressed a joint letter to John Swinney, urging him to abandon proposals for a legal cap on essential food and drink items such as milk, eggs, cheese, and rice, which was previously pledged in the SNP manifesto.

The signatories include the Scottish Retail Consortium (SRC), Food and Drink Federation Scotland, Scottish Bakers, and Dairy UK. They argued that a statutory price ceiling would fail to target the root causes of elevated food prices, which stem from rising production, refrigeration, and distribution expenses.

David MacDonald-Russell of the Scottish Retail Consortium pointed to Hungary as a cautionary example, where price control policies triggered empty shelves, a surge in cheap imported goods, and friction between retailers and shoppers. He added that the policy could also disadvantage smaller shops that fall outside the proposed legislation.

Stock photo for illustration only, not from the actual event

"They are not a solution, they are a gimmick that sounds quite effective, but it just displaces cost elsewhere."

David MacDonald-Russell

In response, the Scottish government maintained that alleviating the cost of living remains a top priority, announcing that a formal public consultation regarding food price controls will be launched shortly alongside a stakeholder summit scheduled for next week.

Source: BBC Politics