Exclusive:Former senior SNP MSP says supermarket price cap 'won't work'

Michelle Thomson - who has served both in both Holyrood and Westminster - said “price caps invariably don’t work”.

The former Falkirk East MSP said that “costs will be passed through the supply chain” if the cap was brought into place.

During the Scottish Parliament election campaign, First Minister John Swinney vowed to bring in a price cap on 50 essential items such as milk, eggs, cheese and rice.

The Scottish Government does not fully have the powers to bring in such measures.

It would need amendments to the Internal Market Act, which was brought in after Brexit to reduce trade barriers within the UK.

Ms Thomson said: "I don’t think it will work.

“Even setting aside the issues of the Internal Market Act, price caps invariably don’t work - unless considerable goodwill from supermarkets.

“But even then costs will be passed through the supply chain."

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Ms Thomson stood down as an MSP at this month’s Holyrood election. She had previously served as Edinburgh West MP between 2015 and 2017.

The suggestion of a price cap has been criticised by business leaders.

Some have warned that it would mean smaller shops - which would not be covered by the cap - would become uncompetitive.

David Lonsdale, Director of the Scottish Retail Consortium, said “the proposal appears poorly thought through and unworkable”.

He said: “This is a powerful intervention from a former senior parliamentarian and the latest in a growing chorus of voices from across industry and civic life pooh-poohing the idea of a ministerial-mandated cap on food prices in shops.

“It’s six weeks since the First Minister declared his intention to introduce a statutory cap on some food prices yet we remain completely in the dark on even the most rudimentary details.

“What is clear is that the proposal appears poorly thought through and unworkable for retail businesses and for the food supply chain.

“Ministers should dispense with this dotty price-cap idea, work with us to reduce government-imposed costs impacting the food supply chain, and allow our intensely competitive food retail market to continue to deliver the best prices possible for Scottish households."

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The First Minister has pledged to bring in legislation on the price cap within 100 days of the election, which took place on May 7.

He has also vowed to engage with the supermarket sector.

It comes as the National Farmer’s Union (NFU) Scotland warned that continued pressure to lower prices could undermine Scotland’s food security.

NFU Scotland President Andrew Connon said: “Cheap food comes at a cost. If governments and retailers continue to focus solely on driving prices down, we risk eroding the very foundations of our domestic food production system.

“Scottish farmers and crofters are proud to produce high-quality food with world-leading standards of animal welfare, environmental stewardship and traceability. But those standards come with a cost, and producers cannot continue absorbing pressure from every direction while returns are squeezed further.

“Food security is national security. If domestic production declines, we become more reliant on imports and more exposed to global shocks, supply chain disruption and geopolitical uncertainty. Recent years have shown just how fragile global food systems can be.”

A Scottish Government spokesperson said: “The planned food price cap is intended to help people with the cost of living by keeping costs low on essential foods such as bread, milk, eggs and other items.

“The Scottish Government regularly engages with the food and drink industry and with retailers and will continue to do so as these proposals develop and as possible changes to legislation are examined. Further details will be announced in due course.”