London, United Kingdom. Britain’s government ruled out mandatory supermarket price caps on Wednesday, but said it was in talks with the sector on ways to ease cost-of-living pressures partly driven by the Iran war.
Government position and talks with retailers
Prime Minister Keir Starmer is pushing departments to shield households from rising prices after a heavy local election defeat this month and amid potential leadership challenges.
Treasury minister Dan Tomlinson said the government would hold conversations with supermarkets about what more could be done to support households, but would not implement a mandatory price cap, speaking to BBC radio.
Reports of proposed caps and industry response
A Financial Times report on Tuesday, later confirmed by Reuters, said the government was asking major supermarkets to introduce price caps on key products such as eggs, bread and milk, in exchange for delaying levies and relaxing regulations.
The suggestion drew a backlash from retailers, with Marks & Spencer Chief Executive Stuart Machin calling the idea “completely preposterous.”
Scottish National Party plan
The Scottish National Party, which holds power in Scotland’s devolved parliament, has announced a plan to introduce a maximum price for “essential” supermarket items.
Marks & Spencer comments on pricing and inflation
Machin said he did not think the government should be trying to run business and should try to understand business better.
He said many retailers, including M&S, already sold staples such as milk, bread and bananas at a loss, and added that easing tax and regulatory pressures would do more to curb food inflation.
What measures do you think would most effectively help households manage rising food costs?