…By Alan Peterson for TDPel Media.
The UK government is planning to encourage supermarkets to implement price caps on essential food items as a means to alleviate the burden of living costs.
According to a Cabinet minister, there will be no mandatory requirements for this initiative.
Reports suggest that Downing Street is currently developing proposals that would urge retailers to charge the lowest feasible prices for basic products such as bread and milk.
The proposed scheme, inspired by a similar arrangement in France, would grant supermarkets the freedom to choose which items they wish to subject to price caps.
The Sunday Telegraph reports that this could potentially be the most significant intervention in pricing since Edward Heath’s controls were introduced in the 1970s.
However, it should be noted that the government emphasized that any participation in this scheme would be entirely voluntary.
When asked about these proposals on the BBC’s Sunday With Laura Kuenssberg program, Health Secretary Steve Barclay stated that the government is actively collaborating with supermarkets to address legitimate concerns regarding food inflation and the cost of living.
He further emphasized the need to consider the impact on suppliers and acknowledged the considerable pressure faced by small, family-run businesses.
Mr. Barclay made it clear that the plans would not involve any form of compulsion.
A source from 10 Downing Street stated that while the proposal is in its early stages, it will not involve government-imposed price controls.
This approach aims to strike a balance between addressing concerns related to food inflation and the cost of living while ensuring the participation of supermarkets is based on voluntary cooperation.
This development comes in the wake of Chancellor Jeremy Hunt’s endorsement of interest rate hikes, even if they carry the risk of pushing the UK into a recession, as a measure to combat soaring inflation.
Although the Consumer Prices Index of inflation decreased from 10.1% in March, it remains persistently high at 8.7% as of April.
Experts have also cautioned that the rising cost of food is expected to surpass energy bills as the primary driver of the cost-of-living crisis.
With food prices projected to continue rising, having already increased by 19.1% in the year leading up to March, families are facing additional financial pressure.