Swinney opens door to ‘voluntary’ food price cap scheme

First Minister John Swinney has opened the door to a “voluntary” food price cap scheme to ensure the measure is in place quicker.

The SNP announced plans to legislate to put price ceilings on up to 50 items in large supermarkets at its manifesto launch last week.

The policy was immediately met with scepticism from the industry and described by the UK Government as “undeliverable”, with a potential legal battle with retailers on the horizon.

But speaking to journalists on Wednesday, the First Minister suggested he could prefer a scheme where supermarkets sign on to cap the cost of some foods.

“I accept there’s the risk of legal challenge, but there’s also other ways to make some headway,” he said.

“I like to find those ways to make progress in improving people’s lives.”

Asked if he could opt for a voluntary scheme, the First Minister added: “Obviously, I think it stands to reason that would get quicker progress, because legislation, in whatever shape or form we’d take it in, would take a bit of time.

“But voluntary steps would be quicker.”

The comments come less than 24 hours after the First Minister said the price cap policy would be passed into legislation by the end of the year.

Speaking at the STUC Congress in Dundee, Mr Swinney said: “I will use public health powers to introduce a maximum price for essential food items.

“We will convene a gathering of supermarkets, public health experts, poverty campaigners and farmers within days of forming the next government, and the legislation for the price cap will be in place this year.”

David Lonsdale, director of the Scottish Retail Consortium (SRC), welcomed the First Minister’s apparent shift, saying he and his group would be happy to meet Mr Swinney to discuss the policy.

“If Mr Swinney’s comments suggest a more realistic and sensible approach is to be taken, then that’s encouraging and to be welcomed,” he said.

“After all, retailers are striving to keep down shop prices whilst facing cost pressures outwith their control, including spiking supply chain and commodity costs resulting from the conflict in the Middle East plus rising public policy costs.

“SRC would more than happy to meet Mr Swinney in early course to discuss how government could assist retailers’ efforts.

“However, we’d be wary of any notion of a voluntary arrangement that would almost certainly fall foul of competition rules on collusion and price fixing which exist to protect shoppers.”

But Scottish Lib Dem economy spokesman Jamie Greene said the policy appeared to be “disintegrating”.

“When you suggest the Scottish Government could deliver cheap food by capping prices to any economist, they literally laugh at you,” he said.

“John Swinney might have the demeanour of a bank manager but not the skill with maths.

“It’s only a week since he announced this policy with great fanfare but already it is disintegrating.

“Usually his party wait at least until polling day is done before ditching their pledges.”