SNP Proposes Food Price Cap Using Devolved Powers
SNP leader John Swinney has committed to leveraging the Scottish government's devolved public health powers to implement a cap on the price of essential everyday foods.
He described the situation as a "moral outrage" that many people are unable to afford adequate nutrition due to the rising cost of living.
However, retail groups have condemned the proposal as a "potty gimmick," while smaller retailers have expressed concerns that it could place them at a competitive disadvantage compared to large supermarket chains.
Unveiling the SNP's manifesto for the upcoming Holyrood election, Swinney called on the UK government to refrain from obstructing the initiative.
The SNP manifesto includes a pledge to cap the cost of between 20 and 50 essential food items.
Swinney stated that the cap would apply to "everyday items that make up a decent diet," including bread, milk, cheese, eggs, rice, and chicken, specifically in large supermarkets.
Retailers Respond to Price Cap Proposal
The Scottish Retail Consortium (SRC) responded by noting that supermarket food prices in Scotland are already among the most affordable in Europe.
The SRC attributed higher prices primarily to increased supply chain and commodity costs, as well as "relentless rises" in statutory costs imposed by governments.
SRC deputy head Ewan MacDonald-Russell explained:
"Supermarkets have always run on very slim margins, especially when compared with other parts of the food supply chain, but profits have fallen significantly in recent times.
Even so, retailers continue to invest heavily to keep prices down, expand their affordable food ranges, lock in the price of many essentials, and raise pay for staff."
MacDonald-Russell criticized the "muddle of new regulations and taxes" stemming from government policies.
"Rather than recreating 1970s-style price controls and potty gimmicks, public policy should focus on cutting retailers' costs so that resources can be directed to keeping prices as low as possible for customers."
Under the SNP's plan, supermarkets would be required to cap the price of at least one brand of each "essential" item, but would not be obligated to cap prices across all brands.
This approach appears similar to existing cheaper, value ranges already offered by many supermarkets.
Details on how the price cap would be implemented remain unclear.
The SNP described the measure as a public health initiative, comparable to the minimum unit pricing policy for alcohol.
Concerns from Smaller Retailers
The Scottish Grocers' Federation (SGF) warned that the policy could disadvantage smaller local shops and "distort the market" by altering consumer behavior.
Luke McGarty, the SGF's head of policy, stated:
"While the policy may be aimed at larger retailers, price caps on selected products will inevitably have knock-on effects for similar items sold in local stores.
Capped prices in supermarkets could encourage customers to travel further to out-of-town locations for staple goods typically purchased locally.
Local stores play a vital role in their communities, providing accessible, lifeline goods and services, supporting local employment, and enabling a local multiplier effect."
McGarty added that many local stores might feel pressured to match supermarket prices, potentially threatening their viability and the benefits they provide.
The SGF confirmed it would "engage fully" with the consultation process and seek dialogue with ministers if the SNP wins the election on 7 May.
Impact of Food Poverty
The SNP is urging the UK government not to block the proposal under the Internal Market Act, which aims to maintain shared trading standards across the UK.
Swinney emphasized that the price cap serves as both a cost-of-living and public health measure.
The Scottish Deep End project, representing GPs serving socio-economically disadvantaged communities, expressed support for improving the "affordability, accessibility and availability" of healthy food.
The project noted that such measures would be most effective when combined with efforts to reduce the number of fast food outlets in poorer areas.
A spokesperson said:
"We see the impact of food poverty on the health of our patients and their families every day.
It is a key driver of both malnourishment and of obesity, which puts people at risk of developing many serious long term conditions such as heart disease, diabetes and cancer.
Making healthy food more affordable is a one important way to address this, but the food also needs to be more easily available and accessible to those who need it the most."
