Business groups urge Swinney to scrap 'ineffective' food price cap plan
Scottish business groups have formally urged First Minister John Swinney to abandon a proposed legal cap on food prices. The coalition argues that such a policy is a gimmick that fails to address the root causes of inflation and could lead to product shortages.
Why it matters
This highlights the ongoing tension between government intervention to manage the cost of living and the practical concerns of the retail and manufacturing sectors regarding market stability.
Image source, PA Media Image caption, John Swinney pledged to put a cap on the price of "essential items" in an SNP election manifesto pledge
The Scottish government's proposed food price cap will be "ineffective", business groups have told the first minister.
Twenty-three organisations have written a joint letter to John Swinney - who will set out his programme for government on Tuesday - urging him to scrap his plan for a legal cap on some food and drink prices.
Signatories include groups representing retail, food and drink production, manufacturing and distribution businesses in Scotland.
In the SNP's election manifesto it pledged to compel large supermarkets to limit the cost of essential items - such as milk, eggs, cheese and rice - to ease the cost of living.
Swinney's 100-day push gives way to bigger battles ahead
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