Scotland's First Minister has announced plans to force retailers to cap the price of 50 food items - he says in a bid to tackle the cost of living crisis. But is John Swinney's approach the right one?
Clearly, Swinney needs policies that focus on tackling the cost of living, and supporters of this approach would argue that rising food prices are a serious issue for families.
However, those who are more sceptical of heavy-handed market intervention may argue that direct price controls risk creating unintended consequences such as shortages, reduced competition, or pressure on smaller retailers and producers.
A better approach might be emphasis on increasing affordability through measures that strengthen supply and competition. This could include reducing barriers for British farmers, cutting unnecessary regulation, improving supermarket competition, and supporting local food production to reduce dependence on volatile international markets. The SNP has long talked up its ambitions for Scottish food production, but farmers and rural businesses have often complained that Scotland’s system can be slow, complex and restrictive, particularly in areas such as diversification, rural housing, food processing and infrastructure. In highly protected landscapes or under environmental rules, even relatively modest developments can become difficult or expensive to deliver.
There is also criticism around environmental policy. The SNP has strongly backed climate and biodiversity targets, but some farming groups argue that the cumulative effect of emissions rules, land-use expectations, peatland restoration and nature recovery schemes can reduce agricultural productivity or create uncertainty for farm businesses. Some see this as placing additional burdens on domestic producers while imported food is produced under different standards.
Critics argue that Scotland talks frequently about local procurement and supporting Scottish produce, but implementation has been inconsistent. Public procurement rules, budget pressures, and centralised supply chains can make it difficult for smaller local producers to win contracts, despite political rhetoric favouring local food.
The truth is that markets alone do not always deliver fair outcomes. There may therefore be support for greater transparency around supermarket pricing, action against unfair practices in supply chains and incentives for retailers to provide affordable healthy food in deprived communities. There's also an argument for temporary, voluntary agreements with supermarkets during periods of exceptional inflation.
Is it the Government's place to fix prices directly? Probably not. But should Government help make food more affordable by creating the conditions for lower prices and stronger domestic production? Absolutely. The First Minister's emphasis should be on practical intervention that supports consumers (e.g. tax reductions, energy bill support, or expanded healthy food schemes) without undermining investment, supply chains, or long-term food security.
Swinney's new headline-grabbing policy is likely to be highly divisive and perhaps help cement his political position in some communities, but it might not work.
