**Scottish First Minister John Swinney Under Pressure to Scrap Food Price Cap Amid Business Backlash**
**EDINBURGH** – More than 20 prominent Scottish business organisations have united to urge First Minister John Swinney to abandon his controversial proposal for a legal cap on certain food and drink prices, branding the plan “ineffective” and potentially damaging to the economy.
The joint appeal was delivered in a letter sent to Mr. Swinney, highlighting widespread concern across various sectors, including retail, hospitality, and food production. The groups argue that while the Scottish Government’s intention to ease the cost of living crisis is understood, imposing price controls would not address the root causes of inflation and could lead to unintended negative consequences.
Signatories to the letter contend that artificial price limits often result in reduced product availability, stifle investment, and could create a black market rather than genuinely lowering prices for consumers. They argue that businesses already grappling with soaring energy costs, supply chain disruptions, and increased operating expenses would be disproportionately affected, potentially leading to job losses and reduced choice for shoppers.
A spokesperson for one of the signatory organisations commented, “The proposal for a food price cap is a misguided attempt to tackle the cost of living crisis. It fails to recognise the complex factors driving current inflation and instead places an unsustainable burden on the very businesses crucial to Scotland’s economy. We urge the First Minister to reconsider this policy and instead focus on measures that support business resilience and long-term economic stability.”
The proposal for a food price cap was initially floated by Mr. Swinney as part of the Scottish Government’s broader strategy to mitigate the ongoing cost of living crisis, which has seen household budgets squeezed by soaring inflation. While the First Minister has previously defended the idea as a potential tool to protect vulnerable consumers, details on its practical implementation have remained scarce.
The Scottish Government has yet to issue an official response to the letter, but the growing opposition from the business community places significant pressure on Mr. Swinney and his administration to review a policy that critics warn could do more harm than good to both businesses and consumers. The debate over the effectiveness and practicality of price controls is expected to intensify as the government continues to explore options for tackling economic hardship.
