SNP slammed for ‘mind-boggling’ food price cap plans

The Scottish government has come under fire for its proposed "mind-boggling" plans to impose price caps on major retailers, including Tesco, Sainsbury’s and Aldi. The Scottish National Party (SNP) drafted a bill outlining the policy, which has been met with skepticism from leading retailers. SNP leader John Swinney announced the plans, but they were quickly dismissed as unnecessary by the retail sector.

Initially, Rachel Reeves, the former Chancellor, considered implementing voluntary price caps for English grocers, but ultimately abandoned the idea. The draft bill aims to introduce statutory price ceilings for up to 50 essential food items, such as bread, milk, and eggs. The legislation claims that while recent food price inflation has eased, many households still struggle to afford essential food items and might face future high inflation.

Under the proposed laws, large supermarkets would be required to price capped products at or below the government-set level, and if they ran out, grocers would need to replace them with another product in the same category at the capped price. However, grocers are not required to provide price-capped products in categories they don't normally stock, which could incentivize supermarkets to stop offering essential foods to avoid losses.

The Scottish Retail Consortium (SRC) criticized the SNP for failing to specify which products will be capped, set prices, or support producers in offering cheaper imports. The trade body warned that the regime may be unlawful, with potential unlimited fines for grocers and penalties of up to £10,000 for lower-level breaches.