Supermarket bosses have condemned government proposals to cap the price of essential items, labelling the plans 'preposterous' and 'dangerous'. Reports suggest the Treasury has discussed limiting the cost of up to 50 staple products, including milk, eggs, and bread, in exchange for reducing regulatory burdens.
Stuart Machin, chief executive of Marks & Spencer, said he had not been contacted directly about the scheme but dismissed it as 'completely preposterous'. He argued that the government should not be running businesses, adding that M&S already sells milk at a 7% loss and bread at a loss. 'We don't make money on milk,' he said.
Former M&S boss and ex-Asda chairman Stuart Rose, now a Conservative peer, called the idea 'stuff of nonsense' and 'idiotic'. He warned it smacked of state control and questioned who would pay the bill and how products would be selected.
However, some economists and campaign groups support the move. James Meadway of the Verdant think tank said price controls are a necessary step, pointing to Greece's 'household basket' system. Devika Dutt of King's College London noted that an energy price cap already exists in the UK and that a similar cap on food would provide relief to the poorest households.
Conor O'Shea of the Cost of Living Action campaign welcomed the government's consideration of price caps, saying four in five people think the government is handling the cost of living crisis poorly. He urged ministers to address structural drivers of the crisis and provide immediate support.
