Business groups urge scrapping of food price cap plan

More than 20 organisations have jointly addressed John Swinney, requesting that he abandon a proposed legal cap on the prices of certain food and drink items. The letter, signed by a mix of consumer advocacy groups, industry associations and local community organisations, was sent to Swinney’s office in Edinburgh on Monday. It argues that the cap would distort market dynamics and could lead to unintended shortages or reduced supply of affected products.

The proposed cap, which would set maximum prices for a range of packaged foods and alcoholic beverages, was introduced as part of the Scottish Government’s cost‑of‑living package. Critics in the letter contend that the measure would disproportionately affect small retailers and producers, potentially driving up costs elsewhere in the supply chain. They also note that similar price‑control initiatives in other jurisdictions have led to reduced product availability and increased black‑market activity. The organisations call for a review of the policy and suggest alternative support measures that would target households more directly without interfering with market pricing.

Swinney has not yet issued a public response to the letter. The Scottish Government is expected to consider the feedback as it finalises the policy, with a potential review of the cap’s scope and implementation timeline. The debate highlights the broader challenge of balancing consumer protection with market freedom in the context of rising living costs.