"Labour ministers have denied claims that the Government is considering supermarket price controls after reports suggested officials explored voluntary caps on essential groceries as part of efforts to ease mounting cost-of-living pressures. Dan Tomlinson , a Treasury minister, rejected suggestions that ministers had approached retailers about limiting the cost of staple items such as bread, milk and eggs. "This isn't something we're looking at," he said during a broadcast interview, insisting the Government was not pursuing food price caps despite growing concern over inflation and household finances."
"The denial followed a Financial Times report claiming ministers had discussed a voluntary arrangement with supermarkets under which retailers would freeze or cap prices on selected essential goods. According to the report, the Government was prepared to offer incentives in return, including easing packaging regulations and delaying potentially costly healthy food rules. The proposals reportedly emerged amid fears inside Whitehall that rising fuel and commodity costs linked to instability in the Middle East could feed through into another wave of food inflation later this year."
"The idea drew immediate criticism from the British Retail Consortium, which warned ministers against drifting towards what it described as "1970s-style price controls". Helen Dickinson, the organisation's chief executive, said the Government should focus instead on reducing policy costs imposed on retailers, arguing that supermarkets were already operating in one of the most competitive grocery markets in Europe. She warned that forcing retailers to absorb rising costs risked creating further pressure across supply chains already strained by energy prices and wider inflation."
"Food inflation climbed to 3.7 per cent in April, intensifying pressure on ministers as household budgets continue to come under strain despite the recent fall in headline inflation. Officials are understo"
Labour ministers denied reports that the government was considering supermarket price controls or voluntary caps on essential groceries. A Treasury minister rejected claims that officials had approached retailers about limiting prices for staples such as bread, milk, and eggs. The denial followed a report that ministers discussed a voluntary arrangement with supermarkets, including freezing or capping prices on selected essential goods. The reported proposal included incentives such as easing packaging regulations and delaying potentially costly healthy food rules. Concerns in Whitehall centered on fuel and commodity costs linked to instability in the Middle East feeding into further food inflation later in the year. The British Retail Consortium criticized the idea, warning against a return to 1970s-style price controls and urging policy cost reductions instead.
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