Former Asda boss and Conservative peer Lord Stuart Rose has condemned reported government plans to impose price caps on essential groceries as "idiotic" and "unworkable", warning they would backfire on ministers.
Speaking on BBC Radio 4's Today programme, Lord Rose said the idea smacks of state control and would never work. "I think the whole idea is the stuff of nonsense and it will never fly," he said. "This smacks of state control."
The comments come after reports that the Treasury is urging supermarkets to voluntarily limit price rises on items like bread, eggs and milk, amid fears the Iran war will push up household bills for those already struggling with the cost of living crisis.
Lord Rose, who previously led Asda and Marks & Spencer, questioned who would pay for the policy and how it would be enforced. "Who is going to pay the bill, who decides what products, who polices it, who is involved, is it small retailers, big retailers?" he asked. "It is absolute nonsense."
He argued that a free market economy remains the best system, warning that price controls would lead to unintended consequences. "We have no better system than free market economy. Free market economy does work. If you start pushing into one side you won't get a reaction somewhere else. You'll get the unintended consequences of trying to do something to keep prices... it'll backfire and it's impossible to police. It's unworkable."
Minister Denies Price Cap Plans
Treasury minister Dan Tomlinson has insisted the government is not looking to impose price caps on everyday items. Speaking to Sky News, he said: "This isn't something we're looking at." Instead, he said the government is exploring different ways to help households amid economic fallout from the Iran war.
Tomlinson also told LBC he had seen no evidence of significant price gouging in the supermarket sector, describing it as a highly competitive industry. However, he said stronger powers for the Competition and Markets Authority would allow it to scrutinise industries during future shocks.
Inflation Falls to 2.8%
The comments come as new data from the Office for National Statistics shows the Consumer Prices Index (CPI) inflation rate fell to 2.8% in April, a boost for Chancellor Rachel Reeves. However, experts widely agree that progress is likely to stall due to the ongoing conflict in Iran.
Chancellor Rachel Reeves said the UK has the "right economic plan", adding: "The war in Iran is not our war but one we will need to respond to, and the decisions I took in the Budget last year have kept inflation down as we deal with global instability."
Criticism of Russian Oil Sanctions Easing
Separately, the government has faced criticism for easing sanctions on Russian crude oil to allow imports of jet fuel and diesel refined in third countries, amid surging costs due to the Iran war. Conservative leader Kemi Badenoch called the move "insane", saying the UK should instead exploit North Sea resources.
Foreign Affairs Committee chair Dame Emily Thornberry said Ukraine had been "very let down" by the decision. "They have looked to Britain as one of their most important allies, and they don't understand, given that we promised that we would stop this loophole in October, and we still haven't done it," she told BBC Radio 4.
Treasury minister Tomlinson defended the move, saying the government must protect the UK national interest during international conflicts, while maintaining one of the strongest sanction regimes in the world and leading support for Ukraine.
