SNP pledges to cap food prices and bus fares if it wins election

The SNP has pledged to cap the price of “essential” foods if it wins the next election.

Bread, milk, chicken and other common items will be sold at a state-mandated rate in supermarkets if the plan is passed.

Speaking in Glasgow, party leader John Swinney said the cost of living is “hammering” household budgets and tackling inflation on nutritious food is a public health issue.

The Scottish Parliament does not have powers over trade rules, which lie with Westminster.

But it does have authority over public health, and Swinney said treating prices as a health issue will give ministers “legitimate” grounds to act.

The plan is similar to that used by the SNP when it brought in Minimum Unit Pricing (MUP) for alcohol.

Retailers would be free to stock more expensive items alongside lines at guaranteed rates.

Swinney said the move targets “necessities that should never be beyond anyone’s means”.

The measure was amongst a package of policies aimed at reducing the strain on personal finances. Others include a free bag and school supplies for children starting primary school and a £2 fare cap on bus journeys across the country.

The fee would apply to a single journey and be subject to consultation with transport firms.

A £200 Youth Culture Pass giving 18-year-olds access to “cultural pursuits” is also pledged by the end of the next parliament.

Like the bus fares, the food price plan would involve detailed discussions with industry.

Pushback from the Scotch Whisky Association led to the delay of the MUP, which was subject to a lengthy and costly court challenge.

Meanwhile, the post-Brexit Internal Market Act (IMA), brought in against the Scottish Parliament’s wishes to ensure parity of trade conditions across the UK, allows ministers in London to block actions that would create extra costs for consumers or businesses by devolved governments.

It was given as the reason for the shelving of Scotland’s Deposit Return Scheme, which remains unimplemented.

On a potential clash with the UK Government and grocery firms, Swinney said Scotland has “powers that we're entitled to exercise if we have a rational basis for so doing”, and that the cost implications on nutrition levels would give his administration “the ability and the legitimacy to take forward that policy step”.

Pledging a full consultation, he went on: “I don't support the Internal Market Act, I think it erodes the exercise of devolved powers. So I'm making it clear in the manifesto that the UK Government has a dimension here that I want to make sure they do not use to undermine the exercise of our properly constituted public health powers.”

The food cap would have a sunset clause allowing it to be lifted when economic circumstances change, with monitoring undertaken to “ensure that this will not be allowed to impact on farmers and food producers”.

Asked about whether he believes in the principles of the free market, former finance secretary Swinney said: “I do support the free market, but sometimes you have to intervene in markets to protect people.”

Responding, Luke McGarty of the Scottish Grocers' Federation said: “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, reducing sustainability and creating a competitive disadvantage for small local businesses.

“Local stores play a vital role in their communities, providing accessible, lifeline goods and services, supporting local employment, and enabling a local multiplier effect. All within walking distance of people’s homes.

“At a time when local retailers are already under considerable pressure from additional costs added by government regulation and global issues, some may feel compelled to try and match supermarket prices, which could threaten both their viability and the benefits they provide.”