Scottish government food price cap proposal

The Scottish government has proposed implementing statutory price caps on up to 50 essential food items, such as milk, eggs, cheese, and rice, to address the cost-of-living crisis. Under the plan, large supermarkets would be required to offer at least one product line per category at the capped price. If a specific product sells out, retailers may be obligated to offer a similar alternative at the same price point.

First Minister John Swinney has defended the initiative as a “public health responsibility” to ensure access to nutritious food. However, the proposal has faced significant opposition. The Confederation of British Industry (CBI) has criticized the measure, with CEO Rain Newton-Smith arguing it “won’t work” because it fails to address underlying supply chain costs like energy, labor, and production. Twenty-three business organizations, including the Scottish Retail Consortium and the National Farmers' Union Scotland, have previously labeled the plan “unnecessary, ineffective and likely to deliver significant adverse consequences.”

Agricultural producers have expressed specific concerns that supermarkets may pass the financial burden of these caps down the supply chain by reducing payments to farmers. Combined with rising energy bills, national insurance hikes, and proposed fertilizer taxes, industry representatives warn these pressures could force producers to exit the sector or pivot to other industries.

In response to the backlash, Scottish Business Minister Tom Arthur stated the government is currently gathering evidence through a consultation. The government also plans to hold a “fair food summit” to facilitate discussions between producers and retailers.