Proposals to cap food prices in Scotland have been dismissed by a veteran City analyst as the kind of policy idea that emerges from ‘coffee shop brainstorming’ rather than a policy based on practical experience of how economies function.
In a blistering note on UK food policy, Clive Black, head of research at Shore Capital, compared the SNP's proposed “Fair Price Plan” to policies more commonly seen in “a severely struggling less developed nation”.
The SNP has proposed legislation next year that would set maximum prices on up to 50 food staples, including products such as bread and milk, as part of its 2026 election manifesto.
Black argued the policy misunderstood the causes of food inflation, which he said stemmed largely from higher energy prices, labour costs, regulation and commodity shocks following Russia’s invasion of Ukraine.
He said supermarket margins remained low and warned state intervention risked undermining one of the world’s most competitive grocery markets.
The note also questioned how ministers would administer price caps in practice, particularly in sectors such as dairy, where supply chains are complex and volatile.
Black warned suppliers outside Scotland could simply withdraw products from the market, leaving consumers with less choice.
"We do not criticise the SNP for bringing forward different policy ideas," he said, though the food idea "feels hair brained, a coffee shop brainstorming idea from policy makers that have never worked in markets".
He argued Scotland would be better served by policies aimed at improving agricultural productivity, promoting healthier diets and tackling obesity, rather than attempting to control retail food prices.
"Whilst we are critical of the plans set out to date, Scotland is clearly in need to a proper food policy, to change its obesity position, to maximise the economic potential of its food production and distribution system, and to change a growing reputation of a once great nation not becoming a basket case."