Scottish price cap plan faces zero support
Industry leaders and food poverty campaigners reject the Scottish price cap plan, warning that the proposed legislation for essential items will not work.
The Scottish government’s plan to cap the price of essential supermarket items has hit a significant wall. Industry leaders and food poverty campaigners have delivered a unified message to Holyrood: the proposal simply won’t work. This consensus emerged during a behind-closed-door meeting attended by more than 60 representatives from trade bodies, retailers, manufacturers, and charities. The gathering, held yesterday, was intended to discuss the practicalities of the draft legislation published last week. Instead, it became a showcase for widespread opposition.
According to one source, the administration achieved an unintended first by failing to find a single supporter of the proposal among those in the room. The proposed rules would require large retailers to limit prices on a raft of essential food items. The legislation targets companies generating more than 50% of their annual turnover from grocery, employing over 250 staff, and recording revenues of more than £250m per year. The list of qualifying products is currently under consultation but will include up to 50 items such as bread, eggs, and milk.
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A Consensus of Opposition
The meeting was called to try to gather ideas on how to make prices “fairer,” despite warnings that the plan would face a furious battle in the courts. Attendees participated in roundtable discussions to consider the logistics of the government’s approach. Yet, the feedback was stark. A source described the event as a “total embarrassment for the government,” noting that absolutely nobody in the room thought that price capping was a good idea. The sentiment was that the plan had zero support among the diverse group of stakeholders present.
Groups such as the Trussell Trust and the Poverty Alliance, which attended the summit, also told ministers that the plans were not the answer to tackling food poverty. They argued that the measures would not help the people the charities serve. This disconnect between policy intent and on-the-ground reality was a recurring theme in the discussions. The government had promised this policy as one of its priority initiatives for its first 100 days in power, a deadline that arrives in November.
David Thomson, CEO of FDF Scotland, highlighted the breadth of the opposition. He noted that the summit included participants from farming, fishing, manufacturing, poverty groups, academia, and the public sector. “From the conversations I heard, everyone agreed that people should not have to choose between food and other essentials,” Thomson said. “However, not one person thought that price capping food in supermarkets would achieve that aim.” The shared concern was that while affordability is a critical issue, the proposed mechanism fails to address it effectively.
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Retailers Cite Practical Flaws
The mechanism proposed in the draft legislation requires retailers who sell any of the qualifying products online or in store to have at least one product in the category for sale at or under the price cap. Ewan MacDonald-Russell, deputy head of the Scottish Retail Consortium, described the day as “quite surreal.” He stated that he had never been at an event where there was such consensus on two points: that food affordability is a huge issue, but that no one’s preferred option is capping grocery prices. This alignment of opinion across competing sectors is rare and signals deep skepticism about the policy’s viability.
The practical implications of such a cap remain unclear to many in the supply chain. Retailers worry that the rules could disrupt pricing structures and inventory management without actually lowering the cost of living for shoppers. The consultation period is now open, but the mood at Holyrood suggests that the government may face significant hurdles in moving forward. If the legislation proceeds as drafted, it is likely to draw legal challenges and further industry resistance. The administration must now decide whether to adjust the draft or press ahead with a strategy that lacks backing from key stakeholders.
