Industry bodies have warned that John Swinney’s proposed Scottish food price cap could have unintended effects, including higher prices for other goods, reduced product availability and weaker investment across the supply chain. The policy matters because it would introduce mandatory ceilings on staple supermarket items, while critics argue it would not tackle the energy, labour, commodity and regulatory costs behind food inflation.

The Scottish Government is expected to decide next week whether to introduce legislation this year covering 20 to 50 products, such as milk, bread, chicken and eggs. Food and Drink Federation Scotland said the cap could put pressure on farmers and manufacturers, encourage retailers to source cheaper imports, and raise concerns under competition law and the UK Internal Market Act; CBI Scotland and Scottish Labour leadership candidate Michael Marra also criticised the proposal.