The Association of Convenience Stores (ACS) has responded to speculation around the introduction of a price cap on supermarket goods in England, calling on the UK Government to tackle the root causes of food inflation.
Media reports earlier this week suggested that the UK Government had approached supermarkets about a voluntary cap on the price of essential goods, similar to proposals in the SNP manifesto. The latter has already been dismissed by the Scottish Retail Consortium as “wrongheaded 1970s gimmick”, while the Scottish Grocers’ Federation (SGF) claimed that the policy could create competitive disadvantage for small local stores.
This morning, Treasury Minister Dan Tomlinson MP has been appearing on TV and radio to state that the UK Government is in fact not looking at introducing this measure, but is instead working to increase the powers of the Competition and Markets Authority through regulations first announced in the Kings Speech.
ACS chief executive Ed Woodall 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.”
ACS has been calling on the government to address the cost of trading and outline meaningful support for retailers as a top campaign priority this year, highlighting the cumulative impact of business rates hikes, increases in the cost of employing people, and the rising cost of energy bills in addition to the cost of adapting businesses to comply with new regulations.
