Treasury accused of copying SNP food price cap – Daily Business

Supermarkets have been asked to cap the price of basic food items

The SNP has accused the Treasury of an “embarrassing” attempt to mimick its food price cap on supermarkets.

Big retailers have been asked to limit the price of basic grocery items, such as break, eggs and milk – just weeks after the SNP announced a similar plan.

The SNP has accused the Labour government of criticising John Swinney’s price cap policy while adopting the same approach to tackling the cost of living.

It has urged Scottish Labour leader Anas Sarwar to declare his support for Mr Swinney’s plan which was announced during the election campaign. The SNP leader has promised early legislation.

It is understood the Treasury’s proposal, first reported by the Financial Times, is for a voluntary cap, though in a highly competitive market it would be optimistic to expect one to make such a move alone. It is thought the Treasury has made the request in exchange for an easing of regulations.

The Treasury has declined to comment.

SNP MSP Alex Kerr, said:  “After weeks of launching bizarre attacks on the SNP for wanting to ensure a fair price for hard-pressed households, the Labour Government has been caught trying to do exactly the same thing. They are in a complete mess. 

“This embarrassing revelation is typical of this Labour UK Government that is utterly distracted by infighting and chaos – the question is why did they oppose the SNP on this in the first place?

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

“Anas Sarwar must now confirm his support for our plans to ensure a fair price at the supermarket till – there is no two ways about it and we need to act quickly to support Scottish families.”

Retailers were critical of both parties’ attempts to cap prices. The British Retail Consortium (BRC) said the “1970s style price controls” would “force retailers to sell goods at a loss”.

One retailer described the idea as “crazy” and the act of a “desperate” government which has been accused of forcing up prices by imposing higher taxes and wages.

Food price inflation is currently 3.7% – while the overall rate of inflation was 3.3% in March, though it may rise to 4% when April data is published on Wednesday.

Some industry groups have warned the rate of food price rises could hit nearly 10% by the end of the year.

Helen Dickinson, BRC chief executive, said there was already “fierce competition between supermarkets”, which had driven down prices.

“The challenge facing retailers is a combination of higher energy and commodity costs resulting from the Middle East conflict, and the soaring cost of the government’s domestic policies,” she added.

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