UK pushes supermarkets for voluntary price caps on essentials

Treasury secretary Dan Tomlinson told the media that the government has held talks with major UK supermarkets about a voluntary freeze on the price of key grocery items such as milk, bread, eggs and butter. The proposal would be linked to an easing of packaging regulations and a possible delay to new healthy‑food rules, but officials said there are no plans for a mandatory price‑control regime.

Industry leaders pushed back. Marks & Spencer chief executive Stuart Machin called the idea “completely preposterous”, while former Ocado chairman Lord Stuart Rose and ex‑Sainsbury’s boss Justin King described it as “nonsense” and warned of competition‑law and market‑distortion risks. The British Retail Consortium also warned against 1970s‑style price controls.

The Scottish National Party has pledged a mandatory cap on up to 50 essential items in Scotland, a model that could resemble Croatia’s scheme of fixed prices for basic food and hygiene products. The Treasury said any Scottish move would need Westminster approval and that it wants assurances British farmers would not lose income from caps.

Food inflation ran at about 3% in April, above overall inflation, prompting concerns about a broader food‑price crisis linked to global supply‑chain pressures. The government said the Competition and Markets Authority could be encouraged to name‑and‑shame retailers perceived to be profiteering, even as Tesco reported an 8.5% rise in pre‑tax profit to £2.4 billion.