The Scottish National Party’s flagship policy to cap food prices has faced sharp criticism, with leading think tanks claiming it would provide ‘almost zero’ assistance to struggling families. Both the Institute for Public Policy Research (IPPR) and the Institute for Fiscal Studies (IFS) voiced serious concerns after First Minister John Swinney reaffirmed his commitment to the controversial measure.
Swinney’s Plan Faces Backlash
Earlier this month, Mr Swinney announced plans to impose ‘legal price ceilings’ on up to 50 essential food items, including bread, milk, and cheese, in major supermarkets. However, after retailers dismissed the idea as a ‘potty gimmick’, the First Minister shifted his stance, suggesting that ‘voluntary steps’ would be quicker and less legally risky than legislation. This apparent U-turn led to accusations of policy chaos, though Mr Swinney later insisted the measure would be implemented by the end of the year.
Think Tanks Voice Concerns
Stephen Boyd, director of the IPPR, was particularly scathing, warning that the policy was politically ‘dangerous’. He told The Times: ‘The chances of this policy making a tangible difference to household budgets over the next parliament are almost zero. Even if we assume that the next Scottish government has sufficient powers to enact the policy, it’s highly unlikely that the prices of everyday supermarket items can be reduced to an extent that makes a real difference to consumers. Making promises that can’t be kept is dangerous in the long run. Populism in all its guises is, in many ways, a response to the persistent failure of mainstream politicians to deliver on their manifesto commitments.’
The IFS also highlighted the food cap, warning that all major parties’ manifestos lacked ‘realism’ about the dire state of public finances. The institute stated: ‘Whether a Scottish Government has the power to enact such a policy is unclear. And there could be unintended consequences if retailers restrict the availability of the specific product lines the caps apply to.’
Fiscal Challenges Ahead
With the Scottish budget projected to fall £5 billion a year short of SNP spending plans in the next parliament, David Philips, IFS devolved finance spokesman, said: ‘While differing in their visions, the major parties share a common shortcoming - a lack of realism regarding just how tough the fiscal challenges facing the next Scottish government are. A slowdown in increases in UK Government funding, growing demands and costs for health and social care and devolved benefits, and a hangover from some bad budgeting habits of the last Scottish government, will mean a Scottish budget under significant pressure. Neither expansions of the Scottish welfare state without commensurate tax rises, nor definite tax cuts without similarly definite reductions in spending, are fiscally credible. In reality, there would need to be difficult decisions elsewhere in the Scottish budget to square the circle. Voters may not warm to a dose of cold, hard fiscal reality.’
Swinney Defends Policy
On Monday, Mr Swinney confirmed he wanted food caps in place this year and urged the UK not to use the Internal Market Act to block the plan. He said: ‘These proposals will be well worked out. They’ll be worked out by engagement with all interested and relevant parties to make sure we’ve got good, deliverable proposals.’
David Lonsdale, director of the Scottish Retail Consortium, commented: ‘These are powerful interventions which pooh-pooh the idea of a government-mandated cap on food prices in shops.’
The Joseph Rowntree Foundation also warned that all parties would fall ‘well short’ of targets to reduce child poverty based on their current plans.
