Scotland's First Minister John Swinney is facing mounting pressure to abandon his proposal for a supermarket price cap on essential food items. The industry body Scotland Food and Drink, which represents 450 Scottish food and drink firms, has warned that the plan could have damaging "unintended consequences" for producers, manufacturers, and supply chains.
The organization emphasized the need for businesses to remain competitive and resilient to ensure a stronger food system in the long term. Iain Baxter, chief executive of Scotland Food and Drink, stated that while food affordability is a priority, policies aimed at reducing consumer costs must avoid negative impacts on producers and manufacturers.
The Scottish Retail Consortium has also directly urged Swinney to scrap the proposal, arguing that it is unnecessary due to existing competition among retailers and could force stores to sell items at a loss. David Lonsdale, director of the Scottish Retail Consortium, noted that such a cap could lead to higher prices on other goods or a move to sourcing cheaper products, potentially harming the Scottish supply chain. He suggested that the government should instead focus on lobbying UK ministers to reduce energy costs and provide targeted assistance to those most in need.
Scottish Conservative finance spokesman Craig Hoy criticized the plan as a "1970s-style gimmick" that was conceived without regard for real-world implementation. He accused Swinney of "arrogantly" believing he knows better than industry experts and urged him to focus on supporting business growth.
Swinney is expected to provide more details on the price cap proposal when the Scottish Parliament reconvenes after its summer recess. A Scottish Government spokesperson confirmed that a full consultation on the price cap will be launched soon and that the proposal is being informed by engagement with stakeholders, including retailers and farmers.