SUPERMARKETS face unlimited fines if they fail to cap the prices of essential groceries under draft legislation published by the SNP Government.
On Tuesday, John Swinney’s administration published the first version of a bill to cap the cost of food and drink items in supermarkets across Scotland, a flagship pledge during the 2026 Holyrood election campaign.
The draft bill states that the price caps will have to be brought in by any business that employs more than 250 people, has an annual turnover of more than £250 million, and more than 50% of its turnover related to grocery sales. It also covers online retailers.
These terms mean that supermarket giants including Tesco, Sainsbury’s, Morrisons, Lidl, Aldi, Asda, Waitrose, and Iceland would have to introduce a price cap, as well as online retailers like Ocado. It is unclear whether businesses such as Co-op and M&S, which have large non-grocery interests, would be taken in.
If businesses fail to introduce price caps on specified items, they face a “fine not exceeding the statutory maximum” (£10,000) for a lower-level summary conviction, or an unlimited fine for a higher-level conviction on indictment.
The draft bill was published on Tuesday as the SNP Government opened a consultation on the food price cap plans.
Business Minister Tom Arthur said: “Helping people with the cost of living is a top priority of this government. Our aim is to make essential food items more affordable for households struggling to pay for their weekly shop, particularly those on lower incomes.
“The consultation covers the wide range of factors we need to consider to implement a food price cap. I am committed to taking action to address food affordability that works with retailers and protects farmers and food producers.
“I have spent the last three months engaging with bodies with an interest in this and encourage everyone to have their say.”
There are said to be concerns that the Scottish Government does not have the legal authority to introduce the price cap, with The Scottish Sun reporting that government lawyers have privately warned that its impact on business compared to limited impact on ordinary people will make it difficult to get through the courts.
Announcing the policy in April, Swinney accepted that he would not “normally” have the powers required.
However, he said: “Things have got so tough, it is now impacting upon our nation’s nutrition. That is a public health issue – and I have public health powers.”
David Thomson, the chief executive of Food and Drink Federation Scotland, criticised the proposals, saying: “Despite publishing a very lengthy consultation paper running to nine chapters, the Scottish Government still cannot answer some of the most basic questions about its food price cap plans, including which products would actually be capped.
“These proposals are causing major concern across Scotland's food and drink supply chain. Businesses that make food and drink in Scotland are increasingly questioning whether the Scottish Government understands, or cares, about the pressures they face and the contribution they make to Scotland's economy."
Earlier this week, 23 industry groups called on the First Minister to U-turn on the price cap, claiming it is “unnecessary, ineffective, and likely to deliver significant adverse consequences”.
A joint letter was signed by David Lonsdale, director of the Scottish Retail Consortium; David Thomson, chief executive of the Food and Drink Federation Scotland; Lesley Cameron, chief executive of Scottish Bakers; and Judith Bryans, chief executive of Dairy UK, among others.
Swinney said, however, that his plans for the price cap “remain as they were set out in the manifesto”.
