First Minister John Swinney confirmed on Tuesday that the Scottish Government still intends to introduce a legally binding price cap on essential food items in Scotland. The proposed cap would apply to products such as bread and milk, with Swinney stating the aim is to give "families greater peace of mind at a time of rising prices."
The announcement was made as part of the Scottish National Party’s programme for government. The government has begun a formal consultation on the legislation, which is planned to cover between 20 and 50 products, including rice, cheese, and eggs. The limits would apply to retailers with over 250 employees, an annual turnover exceeding £250 million, and more than half of their turnover from groceries.
Industry groups, including 23 food, drink, and farming organisations, have voiced strong opposition to the proposals, describing the policy as "unnecessary" and a "potty gimmick." Critics argue that markets are already delivering competitive prices and that a cap could increase the cost of household goods, citing rising production and distribution costs.
Uncertainty remains regarding the legality of a food and drink price cap, with critics suggesting it could conflict with post-Brexit internal UK market rules. The Scottish Government plans to introduce the policy under devolved health powers.
Other commitments announced by Swinney include restructuring local government and NHS boards, introducing a misogyny bill, and setting a £2 price limit on bus fares in the west of Scotland. The government also confirmed a pilot for a minimum income for artists.