Scotland’s draft food‑price caps draw fire from retailers
A Scottish draft bill to cap prices on essential groceries has been slammed as costly and impractical by major retailers and economists.
The Scottish government has unveiled a draft bill that would impose statutory price ceilings on up to 50 essential food items, ranging from bread and milk to eggs. The proposal targets the country’s largest supermarkets, including Tesco, Sainsbury’s and Aldi, and would force them to sell at or below a government‑set price for each capped product.
The proposed caps
Under the draft legislation, if a retailer runs out of a capped item, it must replace it with another product in the same category at the same capped price, even if the substitute would normally cost more. The bill acknowledges that retailers could simply stop stocking a capped item to avoid losses, a loophole that could shrink the range of affordable staples on shelves.
Industry reaction
John Swinney, leader of the Scottish National Party (SNP), announced the plan amid concerns that food‑price inflation, though easing, still strains household budgets. The move follows a brief flirtation in England with voluntary caps suggested by then‑Chancellor Rachel Reeves, which she quickly abandoned after criticism from retailers such as Marks & Spencer chief Stuart Machin, who called the idea “completely preposterous”.
The Scottish Retail Consortium (SRC), which represents the major grocers, described the draft as “fiendishly complex, costly and onerous”. It warned that the lack of clarity on which products would be capped and at what price could force supermarkets to withdraw essential items altogether.
“John Swinney is a latter‑day King Canute hopelessly trying to stop the rising tide of inflation. As surely as night follows day, price caps lead to shortages on the shelves and the sale of inferior products.”, Dr Chris Snowdon, Institute of Economic Affairs
Analyst Clive Black of Shore Capital warned that the policy could send a negative signal to investors, suggesting that the Scottish market is hostile to food and wider industry investment.
Legal and practical hurdles
The draft also outlines steep penalties: unlimited fines for serious breaches and up to £10,000 for lesser offences. However, legal advisers to the Scottish government have flagged potential unlawfulness, noting that compulsory price caps may conflict with competition law.
If the SNP presses ahead, supermarkets could face a choice between selling at a loss or pulling capped items from their shelves, a scenario that could exacerbate shortages and push consumers toward alternative retailers or informal markets.
The next step is a parliamentary debate on the bill, after which the government will decide whether to amend the proposal, seek legal clearance, or abandon it altogether. Retailers and consumer groups alike will be watching closely, as the outcome could reshape grocery pricing across Scotland.
