UK Government Urges Supermarkets to Cap Food Prices Amid Regulatory Talks

UK supermarkets are facing government pressure to voluntarily cap prices on staple foods such as eggs, bread, and milk in exchange for regulatory relief, according to retail industry sources.

The Treasury would consider easing packaging policies and potentially delaying changes to healthy food regulations if supermarkets agree to the voluntary price caps, sources said.

The proposals have drawn strong opposition from retailers, with one describing the plan as “crazy” and the act of a “desperate” government.

The Scottish National Party (SNP) last month pledged to introduce a similar but mandatory price cap in Scotland, though the UK government’s plan would be voluntary.

The Treasury declined to comment on the proposals, which were first reported by the Financial Times.

The initiative comes amid ongoing concerns over the cost of living and grocery prices in the UK.