Scottish businesses oppose proposed food price caps

Twenty-three business organizations representing the retail, manufacturing, and agricultural sectors in Scotland have urged First Minister John Swinney to abandon plans to impose legal price caps on essential food items.

The proposal, a central pledge of the Scottish National Party (SNP) to combat the cost-of-living crisis, would introduce statutory price ceilings on 20 to 50 essential products, such as milk, eggs, cheese, and rice. Under the scheme, supermarkets would be required to offer at least one product line for each category at the capped price.

In a joint letter, signatories including the Scottish Retail Consortium, the National Farmers' Union Scotland, and Dairy UK warned that the measure would be “unnecessary, ineffective and likely to deliver significant adverse consequences.” The groups argued that the policy would fail to address the root causes of inflation—such as rising energy and fuel costs—and could actually increase the total cost of household goods.

First Minister Swinney has defended the plan as a “public health responsibility” to ensure access to affordable, nutritious food. He has indicated that draft legislation will be developed in partnership with producers to manage the transition.