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Government pushes for voluntary price freezes on essentials
UK ministers are pressing supermarkets to voluntarily cap prices on staples like bread, milk, and eggs, but have ruled out mandatory controls, despite industry backlash.
Talks with retailers focus on cost-of-living support
Treasury Secretary Dan Tomlinson confirmed discussions with the grocery sector on Wednesday, framing the proposal as part of broader efforts to ease financial pressures on households. The government has offered regulatory relief-such as relaxed packaging rules and delayed healthy food policies-in exchange for price restraints on key products.
The initiative follows a similar pledge by the Scottish National Party (SNP) last month, though Scotland's plan would enforce a mandatory cap rather than rely on voluntary cooperation.
Industry slams proposal as "nonsense" and "dangerous"
Former Ocado chairman and Conservative peer Lord Rose dismissed the idea as "the stuff of nonsense," warning it smacked of "state control" and would "never work." He argued that a free-market system was the most effective way to manage prices, cautioning against "unintended consequences" of government intervention.
"This is idiotic, it's dangerous, and it'll never fly."
Lord Rose, former Marks & Spencer CEO
Supermarkets warn of losses and supply chain pressures
The British Retail Consortium (BRC) compared the proposal to "1970s-style price controls," warning it could force retailers to sell goods at a loss. BRC Chief Executive Helen Dickinson urged the government to address policy-driven costs-such as rising wages and national insurance contributions-instead of targeting supermarkets.
"The UK has the most affordable grocery prices in Western Europe thanks to fierce competition," Dickinson said, adding that tax burdens and supply chain disruptions were the real drivers of inflation.
Retailers also pointed to geopolitical factors, including the US-Israel conflict with Iran, which has disrupted fertilizer and animal feed shipments through the Strait of Hormuz, pushing up costs.
Inflation data and new watchdog powers
Newly released figures show food price inflation stood at 3% in April, outpacing the overall inflation rate of 2.8%. Industry groups warn this could surge to nearly 10% by year's end.
Amid the debate, Chancellor Rachel Reeves announced plans to strengthen the Competition and Markets Authority (CMA), granting it powers to "name and shame" firms exploiting crises for profit. The watchdog will also gain rapid investigatory tools to target price gouging during economic shocks.
"I will not tolerate anyone exploiting a crisis to make a quick buck off the back of hard-working people."
Rachel Reeves, UK Chancellor
What's next
The government's voluntary approach faces stiff resistance from retailers, who argue it ignores the root causes of food price inflation. Meanwhile, the CMA's expanded powers could signal a shift toward stricter oversight of corporate pricing practices.
