SNP plans to curb the price of staple foods could lead to reduced supplies in shops across Scotland, the shadow chancellor has warned.
Conservative MP Sir Mel Stride warned Scottish First Minister John Swinney – who has proposed the move in a bid to help people hit by the cost of living – that “intervening in the markets like that” could lead to “some form of rationing, undersupply”.
The cost of living has dominated much of the campaign in the run-up to Thursday’s Holyrood election, with Mr Swinney promoting the SNP’s food price cap policy as part of a package of measures to help.
But Sir Mel, who campaigned in Edinburgh with Scottish Conservative leader Russell Findlay on Friday, said instead the First Minister and his party should be focusing their efforts on how to boost the country’s economy.
However, he claimed the approach of the SNP on this had been “lamentable”, criticising higher welfare spending in Scotland along with higher levels of income tax for higher earners.
Speaking about the price cap – which the SNP wants to apply to a number of essential food products – to journalists, Sir Mel said: “The way the SNP should be approaching things is making Scottish people better off so they can afford those items, that means having an economy that is growing.
“And that means on balance getting taxes down, particularly on businesses, who are the engine of growth, and not spending lots of money on welfare.
“Actually getting more people off welfare into work, growing the economy, getting taxes down, that is how you get into a position where people can naturally afford these kind of items.”
The shadow chancellor continued: “If you try to artificially reduce the price of things then the incentive to produce them diminishes.
“What we should be doing is creating a stronger economy so that people can afford things they are currently struggling to afford.”
He stressed: “If you artificially reduce the price of something it is a basic economic fact you will get a lower supply of that item, that is the simple point I am making.
“The right way to address issues of people struggling to afford things is to create a wealthier, faster growing economy and the SNP I think have been lamentable in terms of their approach to tax, their approach to welfare, doing things that have not been good for the Scottish economy.”
His comments came as he also raised concerns about SNP demands for a second independence referendum to take place if the party can succeed in winning an overall majority at Holyrood on Thursday.
He said this would have “a very negative impact”, creating “more uncertainty” for businesses and the economy.
The Tory insisted: “What the Scottish National Party should be doing is concentrating on the real challenges Scotland has.
“It should be concentrating not on putting taxes up but reducing them, it should be concentrating on standing behind our businesses, not on this business rate revaluation that is putting up the cost of business rates, particularly on retail, leisure and hospitality in Scotland.
“And it should be focusing on getting the welfare bill under control so we can get taxes down and the Scottish economy growing. I am afraid all this talk about independence, this obsession the SNP has with this, is a sideshow and a major distraction.”
Mr Findlay meanwhile warned that a second referendum would see the country “plunged yet again into fresh constitutional turmoil”.
He told voters: “If you want to stop that SNP majority the best way to do so, the secret weapon people have across Scotland, is the peach-coloured ballot paper.
“By voting Scottish Conservative in 2021 on the peach ballot paper that is how we stopped the SNP majority, and we can do so again.”
Simita Kumar, SNP candidate for Edinburgh South Western, said: “People are really struggling with the cost of the weekly shop – so the SNP will take action and introduce a legal price cap on a range of essential food items in big supermarkets.
“We want to cut people’s costs and the opposition parties are so determined to stop us that they are reduced to making up nonsensical claims like this.
“The way to ensure we can deliver our plans to support people on the cost of living is to vote for an SNP majority on Thursday.”
