Scottish Business Groups Demand Swinney Abandons 'Ineffective' Food Price Cap Legislation

A coalition of more than 20 prominent Scottish business groups has written to First Minister John Swinney, demanding the abandonment of plans for a legal cap on food and drink prices. The organisations contend that such a measure is ill-conceived and would prove ineffective in addressing the claimed issue of food inflation, instead risking further instability within the Scottish economy.

The joint letter, signed by bodies including the Scottish Retail Consortium, the Federation of Small Businesses, and Scottish Food & Drink, characterises the proposed legislation as an unprecedented and unworkable intervention. Industry leaders warn that price caps would inevitably lead to reduced product availability, diminish investment in the food supply chain, and disproportionately impact smaller businesses already contending with considerable operational costs.

Critics further highlight that the Scottish Government lacks the direct powers over competition law necessary to implement such a cap effectively, suggesting the proposal is more a symbolic gesture than a practical solution. Instead, the groups advocate for collaborative efforts between government and industry to tackle cost pressures through supply chain efficiencies and targeted support, rather than imposing punitive and economically unsound restrictions.