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Business groups urge Swinney to scrap 'ineffective' food price cap plan

2 days ago 2

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The SRC said the policy also risked forcing small shops which are not covered by the proposed legislation to be uncompetitive.

"Scottish consumers benefit from the most affordable food prices in western Europe," MacDonald-Russell added.

"We know food price inflation is a problem, but the best model to deal with it is the one we have right now and price caps are going to make that worse.

"It is giving a false promise that it is going to be able to help with something.

"In reality, there is as good a chance it is going to make the overall cost of a shopping basket higher, because the cost of the scheme as well as the cap have to be absorbed by businesses."

It is thought the proposals would require changes to the UK Internal Markets Act of 2020, which was brought in after Brexit to prevent trade barriers and regulatory divergence between England, Scotland, Wales, and Northern Ireland as powers returned from the EU.

The Scottish Government said helping people with the cost of living was a "top priority".

A spokesperson added: "Ministers have welcomed engagement with stakeholders, including retailers, food producers and farmers on proposals for food price controls.

"A consultation will launch shortly for further views."

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