Scotland's proposed food price cap has been called 'ineffective' by business groups, who have collectively raised an eyebrow so high it's orbiting the Earth. Twenty-three organisations have written a joint letter to First Minister John Swinney, urging him to scrap the plan for a legal cap on some food and drink prices before he unveils his programme for government on Tuesday.

The signatories include groups representing retail, food and drink production, manufacturing, and distribution businesses in Scotland. In the SNP's election manifesto, the party pledged to compel large supermarkets to limit the cost of essential items like milk, eggs, cheese, and rice to ease the cost of living. Swinney has said people are struggling to afford a basic shop, and he has a 'public health responsibility' to provide an affordable nutritious diet.

But the joint letter argues that a statutory cap won't address the 'root causes of elevated food prices' - namely rising production, refrigeration, and distribution costs. The letter is signed by the Scottish Retail Consortium (SRC), the Food and Drink Federation Scotland, Scottish Bakers, and Dairy UK, among others.

Ewan MacDonald-Russell, deputy head of the SRC, told BBC's Radio Scotland Breakfast that the plans are an 'appallingly terrible idea.' He said, 'Price caps don't tackle food price inflation. They are not a solution, they are a gimmick that sounds quite effective, but it just displaces cost elsewhere. We can't see a single example of where this has worked.'

MacDonald-Russell pointed to Hungary, where a price cap policy led to shortages on shelves, domestic products being replaced by 'cheap imports,' and tension between retailers and customers. The SRC also warned that the policy could force small shops not covered by the legislation to be uncompetitive.

'Scottish consumers benefit from the most affordable food prices in western Europe,' MacDonald-Russell added. 'We know food price inflation is a problem, but the best model to deal with it is the one we have right now, and price caps are going to make that worse. It is giving a false promise that it is going to be able to help with something. In reality, there is as good a chance it is going to make the overall cost of a shopping basket higher, because the cost of the scheme as well as the cap have to be absorbed by businesses.'

The proposals would likely require changes to the UK Internal Markets Act of 2020, which was introduced after Brexit to prevent trade barriers and regulatory divergence between England, Scotland, Wales, and Northern Ireland as powers returned from the EU.

The Scottish Government said helping people with the cost of living is a 'top priority.' A spokesperson added: 'Ministers have welcomed engagement with stakeholders, including retailers, food producers, and farmers on proposals for food price controls. A consultation will launch shortly for further views.'