A proposed food price cap in Scotland, championed by John Swinney, is facing significant criticism from a former judge who argues the policy is unnecessary and legally questionable. Sir Iain McMillan, a former judge at the Competition Appeal Tribunal, has raised concerns that the plan could violate both the Competition Act and the UK Internal Market Act.
Swinney, during the Scottish parliament election campaign, announced the intention to implement 'price ceilings' on 20 to 50 essential food items, including staples like milk, eggs, bread, and chicken, sold in supermarkets. However, Sir Iain stated that the policy is 'not needed' and warned it would 'distort an already competitive market' while posing 'risks to businesses in the food industry and to consumers.' He suggested that government interventions often lead to unintended consequences and urged the Scottish Government to abandon the plan, allowing existing competition among large supermarkets to continue benefiting customers.
Sir Iain, who also previously chaired CBI Scotland, elaborated that the proposed cap might contravene the Competition Act 1998 and the UKIMA 2020, which aims to prevent trade barriers within the UK.
David Lonsdale, director of the Scottish Retail Consortium, echoed these concerns, calling Sir Iain's intervention 'important' and stating it 'raises fresh questions and serious doubts about the wisdom of the Scottish Government’s proposals.' Lonsdale asserted that Scotland already has some of the most affordable grocery prices in Western Europe due to strong retailer competition and that price caps would likely result in 'unintended consequences for shoppers, suppliers, and store staff.' He suggested that ministers should focus on reducing statutory costs for retailers and producers rather than introducing additional regulations like mandatory price controls.
A spokesperson for the Scottish Government confirmed that helping people with the cost of living remains a top priority and announced that a full consultation on the statutory food price cap proposal will be launched shortly. The spokesperson added that the proposal is being developed following engagement with relevant stakeholders.