The Treasury has reportedly approached major UK supermarkets with a proposal to limit prices on staple foods like eggs, bread and milk in exchange for easing certain regulations. The move aims to tackle rising food inflation, which hit 3.7% in April, amid concerns over soaring costs driven by energy prices and government policies. Chancellor Rachel Reeves is expected to unveil further household support measures on Thursday to help with the cost-of-living crisis.
Treasury Proposes Incentives
The Treasury has offered supermarkets incentives such as relaxing packaging rules and delaying potentially expensive healthy food regulations to encourage price caps. They are also seeking guarantees that British farmers won’t lose out from any price controls, says the Financial Times.
Retailers Push Back
British Retail Consortium chief Helen Dickinson criticised what she called a return to “1970s-style price controls” and urged the Government instead to focus on reducing public policy costs that are pushing prices higher. She highlighted that UK grocery prices remain the most affordable in Western Europe due to intense competition among supermarkets but are under pressure from global commodity costs and domestic policies.
Government Response Awaited
A Treasury spokesperson said the Chancellor remains committed to efforts to help families manage living costs and will provide more details soon.
Global Pressures Mount
The Foreign Secretary recently warned of the risk of a global food crisis worsening, linked to the Iranian blockade of the Strait of Hormuz, adding to supply concerns.
