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Swinney expressed concern over many individuals struggling to afford a basic grocery shop, emphasizing his “public health responsibility” to ensure people have access to an affordable and nutritious diet. Despite this, a collective letter from various organizations argued against implementing a statutory price cap on food. The letter stated that such a measure would not address the underlying factors driving high food prices, including increases in production, refrigeration, and distribution costs.
Among the signatories were the Scottish Retail Consortium (SRC), Food and Drink Federation Scotland, Scottish Bakers, and Dairy UK. Ewan MacDonald-Russell, deputy head of the SRC, criticized the plans during an appearance on BBC’s Radio Scotland Breakfast program. He described the proposed price caps as an “appallingly terrible idea,” stating that “price caps don’t tackle food price inflation.” He further explained that these caps are merely a superficial solution that shifts costs elsewhere rather than resolving the issue, noting, “We can’t see a single example of where this has worked.”
MacDonald-Russell highlighted Hungary as a case study where similar price cap policies resulted in negative consequences, such as shortages on retail shelves, the replacement of domestic products by cheaper imports, and increased tension between retailers and customers. The SRC also warned that the proposed policy might disadvantage small shops, which would be exempt from the legislation but could become uncompetitive as a result. Emphasizing the current context, MacDonald-Russell added, “Scottish consumers benefit from the most affordable food prices in western Europe,” acknowledging that while food price inflation is a problem, the existing approach remains the best model to address it.
The proposals under discussion may require amendments to the UK Internal Markets Act of 2020, legislation introduced after Brexit to prevent trade barriers and regulatory divergence among the UK’s nations. The Scottish Government reiterated that assisting people with the rising cost of living remains a “top priority.” A spokesperson noted that ministers have been engaging with stakeholders such as retailers, food producers, and farmers regarding the proposed food price controls, and indicated that a consultation period would begin soon to gather further feedback
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