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Could the federal government introduce a price cap on food?
May
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Could the federal government introduce a price cap on food?
It has emerged that the federal government is planning to introduce a price cap on the value of basic food items. That is an try to battle soaring food costs because the cost-of-living crisis rages on.
An agreement with supermarkets and retailers – which can be voluntary – could see essentials similar to bread and milk face a cap – and even a discount – in price. Number 10 have said there can be no obligation for businesses to implement the cap.
With food inflation at the best level for nearly 45 years, hitting 19.1% within the 12 months to April, could possibly be a relief for a lot of. Even though it has eased slightly, there continues to be a protracted solution to go. Nonetheless, the concept is receiving mixed reviews from experts and retailers alike.
Prime Minister Rishi Sunak has been warned his “Seventies-style price controls” could cause food shortages and should not make much difference overall, with the British Retail Consortium (BRC) suggesting the plan “is not going to make a jot of difference”.
The BRC represents the UK’s largest supermarkets and says food prices are reflective of increased energy costs. Similarly, inflated transport and labour costs have contributed to those increases.
George MacDonald, executive editor at Retail Week, suggests a price cap on food could lead on to controls on other essentials. He said: “Where would a price cap initiative end? If introduced there’s no logical reason to limit them to food, there are many other essential items that the less well-off sadly struggle to afford.
“Should products similar to toiletries, cleansing materials and baby goods like nappies – all in high demand on the food banks which have grown as the associated fee of living has borne down on consumers – also come inside the remit of a price-capping scheme?”
Interestingly, the food price cap model relies on one previously utilized in France and has already been put in place in Croatia and Hugary.
Last week, Chancellor Jeremy Hunt met with food manufacturers about the associated fee of food within the UK. In the meeting, Mr Hunt, ‘highlighted the widespread concern among the many British public concerning the current level of food prices and their impact on household budgets’, with the meeting concluding with The Chancellor agreeing that food manufacturers should proceed to have interaction with senior government ministers to take steps to ease pressures on consumers.
Many retailers should not completely satisfied with the proposals, suggesting many supermarkets are already facing losses to maintain prices manageable for purchasers. Although a few of the cost could also be absorbed by businesses themselves, there’s no arguing food prices are causing serious strain to hundreds of thousands across the country.
Some persons are welcoming the concept. On Twitter, user Susanna said: “We live in a ridiculous era that everybody defends prices high as 17 % in food but won’t accept a price cap. If the supermarkets can’t do an inexpensive pricing someone has to intervene.”
User Unity said: “Energy corporations and food producers are profiteering! We’d like price caps!”
What are your thoughts? Tell us within the comments!
