Swinney defiant over ‘potty’ food price cap plan – Daily Business

John Swinney at the SNP manifesto launch (pic: DB Media Services)

John Swinney will defy critics of his food price cap plan when he tells trade unionists today that he is prepared to take on what he terms “vested interests”.

They include retailers who have told the First Minister that ordering supermarkets to limit the price of basic foods is a “potty gimmick”.

Mr Swinney will tell the annual Scottish Trade Union Congress that he believes a cap on a basket of essentials like milk, bread and eggs will have a “transformational” impact on easing the cost of living.

Addressing the congress in Dundee he will say: “As First Minister, when it comes to helping people with the cost of living, I am not afraid to take on vested interests.

“I know just how unaffordable food is for too many people – and it is impacting on health and nutrition. That’s why I will use public health powers to introduce a maximum price for essential food items.

“There are some who have criticised this policy. But congress, we will take forward fair food pricing because it is the right thing to do. I believe it will be transformational.

“In these tough times, that is the sort of bold vision that you should rightly expect from your government.”

The price cap plan was announced last week at the launch of the SNP’s manifesto and was immediately criticised by the Scottish Retail Consortium. David Lonsdale, the consortium’s director, today reiterated its opposition to the plan and said the best solution to lower prices was to cut the cost of doing business.

“We have amongst the most affordable grocery prices in Western Europe thanks to fierce competition between supermarkets,” he said.

“The challenge facing retailers is a combination of spiking energy, supply chain, and commodity costs resulting from the Middle East conflict, and the soaring cost of government policies.

“The best way to keep shop prices down for struggling households in the short, medium, and long term is to support retailers’ efforts and to reduce the public policy costs which are pushing up food prices in the first place.

Supermarkets would bear the brunt of the cap (pic: DB Media Services)

“Mandatory price controls and attempts to compel retailers to sell goods at a loss are not the answer.”

This year Scottish retailers will face about a third of a billion pounds in costs which were not in place in 2024.

That includes £160 million in UK Extended Producer Responsibility fees and £190 million extra in Employer National Insurance contributions. 

These stores are also facing millions of pounds of new costs through the Employment Rights Act and upcoming deposit return scheme.

On top of this larger stores in Scotland – many of them grocers – will pay £54 million extra in business rates compared to their equivalent sized English counterparts.

In Dundee the First Minister will take on the “far right” and promise to have “no truck” with Reform leader Nigel Farage.

“There will be no grubby deals. No backroom conversations. I will use every power at my disposal to lock Nigel Farage and the far right out of Holyrood,” he will say.

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