The UK government has rejected calls to limit price hikes on essential food products despite rising inflation and is calling for an inquiry into supermarket ‘profits’.
Mark Spencer, minister for food, agriculture and fisheries, ruled out asking retailers and producers to stop raising prices just weeks after food inflation hit its highest level in more than 45 years.
Spencer said it “is not for the government to set retail prices or comment on companies’ day-to-day business decisions” in response to a parliamentary question on Thursday.
However, he added, government officials will continue to work with companies to ensure groceries are affordable.
His remarks contrast with actions taken by France, which reached an agreement with food retailers in March to set the “lowest possible price” on some products for three months. This week, supermarkets agreed to extend those efforts, said Bruno Le Maire, France’s finance minister.
UK supermarkets, meanwhile, have been accused by some MPs and unions of “profiteering” and failing to curb price increases. The cost of food has increased 19.2%. in the year to March with sharp increases in almost all categories.
The bosses of the biggest supermarket chains have said, however, that they are not raising prices in step with overall inflation and that their profit margins are paper thin.
Tim Farron, the Liberal Democrat MP and environment spokesman, on Friday accused the minister of a “horrifyingly shameful and heartless dereliction of duty” at a time when families were struggling to afford to put food on the table.
Farron urged Spencer to ask the competition watchdog to investigate supermarkets’ “shameless profit-making” and to extend free school meals to 800,000 children living in poverty.
Spencer added that the Department of Environment, Food and Rural Affairs has met regularly with food retailers and trade associations to discuss a range of issues, including the effect of food inflation.
The minister made the comments in a written reply to Patrick Grady, the Scottish National Party MP for Glasgow North, who had written to him on the issue of rising food costs.
Defra was “taking action to maintain an efficient food supply chain by militating against any burdens or frictions that might otherwise drive up consumer food prices,” Spencer added.
Supermarkets were selling more items in the value range, matching rivals’ prices and freezing them on certain products, he said, to help families meet costs.
Prime Minister Rishi Sunak is expected to hold a meeting at No. 10 this month with heads of supermarkets, trade bodies and farmers to discuss a range of issues including high inflation.
A government spokesman said the meeting would bring together the government and representatives from across the food chain to establish cooperation and promote all elements of agriculture and the food industry.
“The event will look at how we can champion UK food and drink both at home and abroad – by building trust, helping more businesses invest in domestic production and supporting the long-term resilience and sustainability of the UK food sector. United Kingdom,” they said.
Last year, Downing Street was accused of make “heated ads” after unveiling a number of existing company measures aimed at helping households cope with the cost-of-living crisis.
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