Reports emerged this week that the Government might be considering introducing a price cap on goods in larger supermarkets.
Stories were first published in the Financial Times suggesting the Government had approached supermarkets about a voluntary cap on the price of essential goods - similar to an idea put forward in the Scottish National Party manifesto, which would see a cap on the price of 20 to 50 items - albeit imposed on large supermarkets only.
It was suggested the Government could hold back on areas of regulation such as packaging reforms and HFSS interventions, in exchange for retailers keeping their prices low.
However, Treasury Minister, Dan Tomlinson MP, later appeared in the media to state the Government is in fact not considering it, but is instead working to increase the powers of the Competition & Markets Authority through regulations first announced in the King’s Speech.
In response, the Association of Convenience Stores directed the Government instead to what it calls the “root causes” of food inflation. Chief executive, Ed Woodall (left) said: “Local shops are working hard to deliver everyday low prices at the same time as their operating costs and food inflation are rising.
“We need the Government to set out a proper plan for supporting local shops on employment regulations, business rates relief and energy bills, instead of short-lived gimmicks on voluntary price caps.”
The ACS has been calling on the Government to address the cost of trading and outline meaningful support for retailers as a top campaign priority in 2026, highlighting the cumulative impact of rates hikes, increases in the cost of employing people and rising energy bills in addition to the cost of adapting businesses to comply with any new regulations.
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