Responding to First Minister John Swinney's call issued earlier
today for Grocery Retailers to act now on food prices, Ewan
MacDonald-Russell, Deputy Head of the Scottish Retail Consortium,
said:
"Mr Swinney can be assured our hyper-competitive grocery food
market ensures retailers are already incentivised to keep food
prices as low as possible. Any retailer who puts up prices
unreasonably would lose custom and market share. That competitive
market, along with robust efficient businesses, is why Scotland
has the most affordable food prices in Western Europe. This is
why we believe astatutory price cap is a redundant policy.
"The reason why food price inflation increases are likely later
this year is the dual combination of the conflict in the Middle
East and the relentless and ongoing pipeline of public policy
costs. If Mr Swinney could support our calls for targeted changes
in government policy costs that could make a difference to
inflation much more swiftly and effectively than a price cap. The
reality is unless cost and inflationary pressures on farmers,
manufacturers, and retailers are alleviated food prices will
rise. Fixing the cost of doing business is the way to fix the
cost of living. We hope the next Scottish Government will work
with us on steps that will make a tangible difference."
ENDS
Note 1: Scottish retailers face around a third of
a billion pounds in extra annual costs which weren't in
place just a couple of years ago. That includes £160 million in
UK Extended Producer Responsibility fees and £190
million extra in Employer National Insurance
contributions. These stores are also facing into millions
of pounds of additional new costs through the
Employment Rights Act and the upcoming deposit return scheme. On
top of this larger stores in Scotland – many of them grocers –
will pay £54 million extra in business rates compared to their
equivalent sized English counterparts in 2026-27.
Note 2: SRC's remains more than happy to meet Mr Swinney in early
course to discuss how government could assist retailers' efforts.
