Rishi Sunak's idea has drawn the ire of supermarket chains and cabinet ministers. Credit: Belinda Jiao/Getty Images Europe
Rishi Sunak scraps plans The Telegraph understands that after the backlash from retailers, ask supermarkets to set price caps for essentials.
Downing Street considered the possibility of voluntary price caps for large supermarkets, along the lines of a similar plan in France, under which the prices of basic goods were frozen.
The idea sparked the fury of supermarket chains and cabinet ministers, who warned that the cap “was style of the 1970s” may lead to shortages or higher prices for other goods.
Last month, a statement backed by the Morrisons, Waitrose, Sainsbury's and Tesco said the scheme “won't do any good”. little difference in prices.”
Industry sources told The Telegraph they have since been assured the plans have been canceled and ministers have taken other measures to deal with food inflation in excess of 19 percent.
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The source said officials have assured retailers that ministers will not interfere with prices and that the voluntary scheme is now deemed unworkable due to backlash from supermarket bosses.
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Downing Street has been reluctant to discuss the idea since it was first revealed by The Telegraph.
Steve Barclay, health secretary, said tentative price freeze plans were in place but “did not contain any element of coercion.”
Two government sources have confirmed that a freeze has been discussed but is unlikely to happen. go ahead amid fears of the political damage the backlash could do to Mr. Sunak.
On Wednesday, Insider Number 10 insisted there were “never plans to freeze prices” while while a spokesperson for Mr. Sunak added: “We are not talking about setting prices or anything like that.
“We will continue to work with supermarkets and other suppliers on what else can be done to help those who are experiencing difficulties.
It comes after Mr. Sunak hinted that he could also lift Boris Johnson's ban on buying one of them. get one free junk food deal.
The crackdown on multi-shop supermarket deals was part of Mr Johnson's anti-obesity campaign launched in 2020 after his fight against Covid, but was delayed last year due to the sharp rise in food prices. .
While Downing Street insisted it would push for restrictions, Mr Sunak opened the door for a turnaround when Shipley's Conservative MP Philip Davies challenged the prime minister on Wednesday.
< p>Mr. Davis called the policy a “socialist landmine” and urged Mr. Sunak to abandon it.
The Prime Minister replied: “After I entered into the cost of living, we have already, as he knows, postponed introduction of this policy.
“No final decisions have been made yet, but I will continue to take what he says very seriously in all of our discussions.”
Analysis by the Department of Health and Human Services policy, which resurfaced this week, showed the ban would only have a minimal impact on calorie intake.
Disputed for the impact of the policy, Mr Sunak's spokesman said on Monday that the government's obesity strategy would have ” cumulative effect, rather than just considering policies in isolation.”
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