Scotland's food and drink industry has collectively called on Scottish ministers to abandon plans for mandatory price caps on essential supermarket items. The proposal, part of First Minister John Swinney's agenda and included in the Scottish Government's programme for government, faced unanimous opposition from industry representatives at a recent summit.
The "summit on tackling rising food costs," held behind closed doors, brought together a wide array of stakeholders including retailers, producers, farmers, fishermen, business organizations, regulators, and anti-poverty charities. Attendees reported that no participant spoke in favor of the price cap proposal, which aims to impose mandatory price ceilings on 20-50 essential supermarket items.
This initiative was a prominent announcement in the SNP's manifesto for the recent Holyrood elections. However, the Scottish Government's own consultation on the matter acknowledged the potential for food shortages as a consequence of the policy.
David Thomson, chief executive officer of Food and Drink Federation Scotland, stated that while all participants agreed on the need for people not to choose between food and other necessities, "not one person from these very different groups thought that price capping food in supermarkets would achieve that aim." He urged ministers to drop the policy, emphasizing that the message from the summit was clear.
Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, reiterated concerns that statutory price caps risk increasing overall shopping basket costs, leading to shortages of capped products and damaging the Scottish supply chain. He suggested that after the summit, ministers could not credibly claim the potential negative consequences were unforeseen.
The Scottish Government's consultation has not detailed the specific range of items or the exact price levels for the caps, but anticipated items include bread, milk, and eggs. The consultation document itself noted that price caps could lead to direct consequences for product availability and producer requirements, as well as indirect impacts on production, supply chain resilience, animal welfare, and net zero objectives.
Tom Arthur, the Business and Fair Work Minister overseeing the consultation, opened the summit. He acknowledged the ongoing consultation but also referenced the proposal as an SNP manifesto commitment. Arthur emphasized the cost of living crisis and the need for "bold action to help households." He stated that the insights gathered from the summit would inform the government's consultation on legal price caps, aiming to ensure affordable, nutritious food while supporting a resilient and successful food industry. The summit discussions are intended to inform the Scottish Government's ongoing consultation regarding legal price caps on essential food items.