After months of silence and NO mention of 'flagship' policy at SNP conference, retailers deliver a stinging ultimatum to John Swinney: Ditch it now!
John Swinney is under pressure to scrap his food price cap ‘gimmick’ after failing to mention the flagship policy at the SNP conference. Supermarkets are still in the dark over key details of the controversial scheme with a leading retail chief claiming it was ‘startling’ that the First Minister ignored the subject in his keynote speech in Aberdeen on Saturday. The SNP leader has still to lay out how his proposal for mandatory price ceilings on 20-50 essential food items in supermarkets will be enacted – six months on from it being the highest-profile announcement in the SNP’s manifesto for the Holyrood election. He previously boasted his scheme would include price caps on foods such as chicken, bread, cheese and eggs and that the legislation would be introduced by the end of this year. But David Lonsdale, director of the Scottish Retail Consortium, said: ‘Given the mooted food price cap was front and centre of the party’s manifesto and election campaign it was a startling omission from Mr Swinney’s conference speech. ‘Whether it suggests Scottish ministers are having second thoughts about the policy, first unveiled six months ago, remains to be seen. John Swinney did not mention the flagship policy in his keynote speech at the SNP party conference on Saturday ‘What we do know is that we already have the most affordable grocery prices in western Europe; that price caps would be fiendishly complex to implement and have unintended consequences for shoppers and suppliers; and that Mr Swinney’s stated desire to see price caps in place by the turn of the year won’t happen. ‘Whilst government has wasted time and effort over recent months on this ill-conceived throw-back to the 1970s the fact is retailers have striven to keep prices down in the face of rising supply chain and government-mandated cost pressures. ‘Price caps are the wrong solution to food price inflation. Instead, Mr Swinney should ditch the price cap, get behind our hyper-competitive grocery market, and work with us to reduce the cost burdens retailers and food producers face.’ Mr Lonsdale also highlighted that last Friday was exactly six calendar months since the First Minister unveiled the food price cap proposal at the launch of the SNP’s Holyrood election manifesto in Glasgow, yet businesses are ‘still none the wiser on the most rudimentary detail’ including the products which will be in scope, what the prices will be, how these will be set, how long the scheme will last and who would be responsible for monitoring and enforcing it. Under the plan, which was the highest profile announcement in the SNP manifesto for this year’s Holyrood elections, mandatory price ceilings would be imposed on 20-50 essential supermarket items, including chicken, bread, cheese and eggs. SNP ministers are pressing ahead with the plan, which was the highest profile announcement of the party’s manifesto for the Holyrood elections this year, despite their own consultation launched last month admitting it could trigger food shortages. It noted that a price cap ‘may have direct consequences for product availability, producer requirements and food supply chains’, as well as ‘indirect consequences for production, including impacts on supply chain resilience, animal welfare and net zero objectives’. Economy Secretary Stephen Flynn surprised those attending a Food and Drink Federation event at Holyrood last month by making no reference to the proposal, despite it being the highest-profile policy in his portfolio and facing unanimous opposition from retailers and food producers. Retailers have criticised the policy, unveiled 6 months ago Scottish Conservative finance spokesman Craig Hoy said: ‘This silly scheme was the SNP’s big idea in the run-up to May’s Scottish Parliament election. ‘Like so many Nationalist announcements, it was a gimmick to grab headlines that no one believed would ever come true. ‘No wonder John Swinney quickly pushed this unpopular, shambolic and unworkable policy on to Stephen Flynn, the man who’s gunning for his job. ‘Families and businesses are hurting because of the SNP’s high-tax agenda and the Scottish Government needs to make real plans to help them, now.’ The Mail previously revealed that a Scottish Government ‘summit on tackling rising food costs’ held last month was dominated by concerns about the food price cap. Attendees at the event said they did not hear a single person speak in favour of the proposal. Minister for Business Tom Arthur said: ‘The cost of living crisis means that many families are struggling to put food on the table, and bold action to help households is necessary. ‘That is why we published draft legislation which aims to make essential food items more affordable for households struggling to pay for their weekly shop, particularly those on lower incomes. ‘I recognise the concerns raised by retailers and food producers about the potential impacts of the food price cap, which is why I am engaging extensively with them as part of the consultation.’