The major supermarket has joined other retailers in hitting back at the government’s call to freeze prices of everyday essentials, including milk bread and eggs.
Marks and Spencer, alongside other supermarkets, has responded to the government’s plan to cap the price of essential items.
M&S’ chief executive Stuart Machin has called the scheme “completely preposterous”, after being urged by government to voluntarily freeze prices of key groceries.
Treasury secretary Dan Tomlinson confirmed that talks with the sector had taken place “about the steps that they can take to support people with the cost of living” but added that supermarkets would not be forced to cap prices.
The Treasury asked retailers on Tuesday to freeze the price of certain produce in exchange for an easing of packaging policies.
The deal would also see a potential delay to rule changes coming in regarding healthy food.
The proposals were first reported by the Financial Times and follow a pledge made by the Scottish National Party (SNP) last month.
However in Scotland this price cap is not voluntary, which it would be in England.
The proposal has been slapped back at by supermarket bosses with Machin expressing strong frustration at the idea.
Tomlinson argued that the move comes as an attempt to to support people with the cost of living as conflict in Iran has created concern over surging prices.
“It’s right that the government looks across the board at what more we can do – both government levers but also talking to industry about the steps that they can take to support people with the cost of living,” he said.
Figures show that the annual rate of food price rises was 3 per cent in April, sitting higher than the overall rate of inflation which was 2.8 per cent.
It has been warned that food prices could see a 10 per cent hike by the end of the year.
Machin argued: “My advice is that the Government should reduce some of the tax and regulatory burden and free us up in a very competitive market.”
Other supermarket leaders also critiqued the move, with the former boss of Sainsbury’s Justin King labelling the proposals “pretty silly” and would lead to “all sorts of competition law issues”.
King added that it was “hypocritical” for the Treasury to ask retailers to freeze prices when its policies were adding to inflation.
“If the government holds back on some of the things it’s increasing… that will quickly flow through [to consumers],” he said.
The former chairman of Ocado and Conservative peer Lord Stuart Rose also said: “I think the whole idea is the stuff of nonsense and it will never fly.”
“This smacks of state control, it’s idiotic, it’s dangerous, and it’ll never work.”
The peer added that there is “no better system than a free market economy”, saying there could be “unintended consequences” should the government intervene in pricing.
Helen Dickinson, the chief executive of the British Retail Consortium, said: “Rather than introduce 1970s style price controls and trying to force retailers to sell goods at a loss, the government must focus on how it will reduce the public policy costs which are pushing up food prices in the first place.”
