Scottish Government publishes draft food price cap proposals

Ministers have published draft legislation which would cap the price of “essential” foods at large supermarkets.

The pledge was made during the election campaign as part of the SNP’s wider commitment to reduce the cost of living.

But it immediately saw significant opposition from retailers, farmers and food producers, who were concerned the cost would be pushed onto them.

Views are now being formally on the proposals, with the consultation covering how the mechanism would work and what retailers and foods would be covered by the scheme.

Business minister Tom Arthur said reducing bills for households was a “top priority” for the government.

He added: “Our aim is to make essential food items more affordable for households struggling to pay for their weekly shop, particularly those on lower incomes.

“The consultation covers the wide range of factors we need to consider to implement a food price cap. I am committed to taking action to address food affordability that works with retailers and protects farmers and food producers.”

Ministers have also been engaging with UK counterparts regarding the plans as it would likely be impacted by the UK Internal Market Act, reserved legislation which previously stymied the introduction of a deposit return scheme.

First Minister John Swinney had previously said the bill would be introduced within 100 days of the new parliament. The government says the publication of this draft fulfils this pledge.

The proposal includes the introduction of a maximum price for “essential food items” including bread, milk and eggs – but retailers would also be allowed to sell higher cost goods alongside the options that are capped.

It also does not say what price the cap would be set at, with that to be determined by ministers at a later date.

The legislation would only impact businesses with more than 250 employees and with a turnover of over £250m (of which at least half must relate to the sale of groceries).

It also includes a sunset clause and a commitment to review the legislation between four and six years after its implementation.

The consultation closes in late November.