The Scottish Government’s planned food price cap “won’t work”, the head of a leading business body has said.
John Swinney announced the move during the campaign for May’s election, with a consultation having been launched on capping the cost of household staples in a bid to reduce the cost of living.
But speaking ahead of the Confederation of British Industry’s (CBI) annual dinner, Rain Newton-Smith urged the Government to focus instead on reducing the cost of producing food.
“The proposal of a food price cap here in Scotland won’t work,” she said.
“While a cap can hold down a price, it cannot bring down the cost behind it – the cost of farming, production, refrigeration, labour, energy.
“It can change the number printed on the shelf, but it does not bring down the costs running through the supply chain.
“Divert the policy energy and resources that will be wasted there into something positive.
“Work with business to ease the pressure where you can and let competition do its job.”
Ms Newton-Smith also urged both the UK and Scottish governments to work together to improve the environment for businesses.
“This is a moment when we must focus on wealth creation just as much as wealth division – in Westminster and Holyrood.
“Business does not experience reserved or devolved powers. That’s policy language.
“They experience one business environment, and right now it is being squeezed from all sides.
“To drive growth, to create prosperity, to ease the pressure on people in all postcodes, business urgently needs breathing space too.
“We need governments on both sides of the border to work together to provide it.”
Scottish business minister Tom Arthur said: “We are gathering views and evidence to inform next steps to make essential food items more affordable.
“Too many households are struggling with food costs, so it is all the more important that we take decisive action – particularly to help those on lower incomes.”
