Business groups push First Minister to abandon proposed food price cap
Twenty-three Scottish business organisations have written to First Minister John Swinney urging him to drop a planned legal cap on certain food and drink prices, calling the measure ineffective.
A joint letter signed by 23 Scottish business bodies has been sent to First Minister John Swinney, asking him to scrap a proposed legal cap on selected food and drink items. The signatories, which include the Scottish Retail Consortium, Food and Drink Federation Scotland, Scottish Bakers and Dairy UK, contend that the cap would not address the root causes of food price inflation, such as higher production, refrigeration and distribution costs.
They warned the measure could create shortages, push cheap imports onto shelves and disadvantage small retailers excluded from the legislation, pointing to Hungary as a cautionary example. Critics described the plan as a “gimmick” that would likely raise overall shopping basket costs. The Scottish Government maintains that easing the cost of living is a top priority and will soon open a consultation to gather further input. Any changes would likely require amendments to the UK Internal Markets Act of 2020.
Why it matters
The proposal could reshape food pricing and affect consumers and retailers across Scotland.
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