A TREASURY minister has denied that the UK Government asking supermarkets to cap essential food prices is "mimicking" an SNP election pledge.
On Tuesday, the Financial Times reported that the Treasury was set to ask large supermarkets to introduce voluntary price caps on key groceries in return for lifting some regulations.
The reported plans would see shops agree to identify and cap the prices of essential goods such as eggs, bread and milk. UK food inflation rose to 3.7% in April.
The FT cited four people who were familiar with the matter, but on Wednesday morning MP Dan Tomlinson insisted this was “not something that we’re looking at”.
The reports saw a furious response from supermarkets, while the SNP accused Labour of mimicking their own policy – proposed by John Swinney during the Holyrood 2026 election campaign.
One person close to a supermarket told the FT that the reported Treasury initiative was “a rubbish, knee-jerk reaction to the SNP”.
The UK Government’s alleged price caps – which they have now denied – would be voluntary, the newspaper said.
Responding to the story on BBC Breakfast, Tomlinson, the Exchequer Secretary to the Treasury, said: “This rumoured story about caps on food prices I can be really clear with you this is not something that we’re looking at.”
However, a spokesperson for the Treasury said: “The Chancellor has been clear we want to do more to help keep costs down for families, and will set out more detail in due course.”
On Tuesday, the SNP criticised the UK Government for considering the policy after criticising Swinney’s own plans.
“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,” SNP MSP Alex Kerr said.
“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?
“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.
“Broken, Brexit Britain is in a constant state of crisis with Scottish households paying the highest price time and time, but through a fresh start with independence we can be free of Westminster and build a wealthier and fairer Scotland anew.”
Helen Dickinson, the chief executive of the BRC, the leading trade association for retailers, said: “Rather than introduce 1970s style price controls and trying to force retailers to sell goods at a loss, the Government must focus on how it will reduce the public policy costs which are pushing up food prices in the first place.”
She added: “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.”
“The UK has the most affordable grocery prices in Western Europe thanks to the fierce competition between supermarkets,” she also said.
