CBI opposes Scottish Government's proposed food price cap

The Confederation of British Industry (CBI) has criticized the Scottish Government's proposal to implement a food price cap on household staples. Speaking ahead of the CBI's annual dinner in Glasgow, CEO Rain Newton-Smith argued that the measure “won't work” because it fails to address the underlying costs in the supply chain, such as farming, production, energy, and labor.

Newton-Smith suggested that instead of capping shelf prices, the government should focus on reducing production costs and working with businesses to foster growth. She also called for better cooperation between the UK and Scottish governments to improve the overall business environment, noting that businesses face pressures regardless of whether powers are devolved or reserved.

In response, Scottish Business Minister Tom Arthur stated that the government is currently gathering evidence through a consultation to determine the best steps for making essential food items more affordable for struggling households.