SNP ministers are proceeding with a plan to impose a price cap on essential food items, even as the government acknowledges the potential for shortages. The public consultation, launched Tuesday, seeks input on proposals for mandatory price ceilings on goods such as bread, milk, and eggs.
The plan, a prominent feature of the SNP's election manifesto, has drawn criticism from industry leaders and opposition parties who have labeled it a "bonkers 1970s-style gimmick." The consultation document itself notes that price controls "may have direct consequences for product availability," alongside potential effects on food producers, supply chain resilience, animal welfare, and Net Zero commitments.
Despite these acknowledged risks, First Minister John Swinney remains committed to the policy and has pledged to have the cap in place by the end of the year. The public consultation is scheduled to run until November 24.
Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, stated that ministers appear unprepared to implement the policy, urging them to abandon the cap and collaborate with the industry to combat inflation. He added, "They should scrap the cap and work with industry to get on top of inflation – including public policy costs."
The proposed price cap would apply to businesses with a turnover exceeding £250 million and more than 250 employees, where more than half of revenue comes from grocery sales. The consultation does not specify the exact range of products or the level at which the cap would be set. It does, however, mention that if a price-capped item becomes unavailable, it would need to be substituted with another item at or below the capped price.
A spokesperson for the First Minister confirmed the government's commitment to the policy, citing its inclusion in the election platform and subsequent public mandate. "Yes. We put forward this proposal in the election, people elected the government with the policy there and we are taking forward that commitment," the spokesperson said.
David Thomson, CEO of Food and Drink Federation Scotland, expressed concern that the government has not provided basic details about the plan, including which specific products would be capped. Scottish Conservative business spokesman Rachael Hamilton described the consultation document as "flimsy" and called for the immediate abandonment of the policy. Reform UK MSP Kim Schmulian has also called for the government to release any legal advice received on the policy's lawfulness.
Business and Fair Work Minister Tom Arthur stated that he is committed to addressing food affordability in a way that cooperates with retailers and safeguards farmers and producers.