Arabic version: وزيرة المالية تتخلى عن اقتراح تحديد أسعار المواد الغذائية بعد رد فعل سلبي من المتاجر

Chancellor Rachel Reeves has retracted her proposal to impose price caps on essential food items after facing significant criticism from supermarkets. According to BBC News, the move was deemed unsustainable by Bank of England Governor Andrew Bailey, who warned that such a measure could lead to an artificially distorted economy.

The backlash from the retail sector was swift, with Marks & Spencer’s chief executive, Stuart Martin, stating that the supermarket chain was already incurring losses on staple items like milk and bread. In light of this feedback, the Chancellor has shifted focus to ongoing discussions with UK supermarkets aimed at reducing food costs for consumers without implementing price caps.

The Financial Times reported that the government initially considered voluntary price caps but has since abandoned these plans in favor of alternative measures to alleviate the cost of living for shoppers. The Daily Mirror highlighted that shoppers could see savings on food staples as the government explores other strategies, including tariff cuts on over 100 items.

This development comes at a time when the economy is under scrutiny, with various stakeholders emphasizing the importance of sustainable pricing strategies that do not compromise market integrity. The conversation continues as the government seeks to balance support for consumers with the realities faced by retailers.