To ask the Scottish Government what its response is to the Scottish Retail Consortium’s reported forecast that food price inflation is set to increase to 6% by the end of 2025.
The Scottish Government closely monitors food inflation data published by the Office for National Statistics and inflation projections published by the Office for Budget Responsibility and Bank of England. The British Retail Consortium’s forecast is concerning, particularly for low-income households in Scotland who are already grappling with cost-of-living pressures and are disproportionately affected by rising food prices. That is why the Scottish Government continues to allocate over £3 billion a year to policies which tackle poverty and the cost of living, as well up to £1.3 million to tackle food insecurity. The Scottish Government remains committed to improving our food security, making Scotland a global leader in sustainable and regenerative agriculture (with high quality food production one of the five objectives of the Agriculture and Rural Communities Act), and supporting Scotland in becoming a Good Food Nation.
There are a range of global and domestic factors driving food price inflation and whilst the Scottish Government is seeking to support households and local food suppliers in Scotland, there are a number of challenges that lie specifically with the Uk Government. Indeed, the Bank of England’s latest monetary report details factors such as regulatory changes and rising labour costs, which have been exacerbated by the UK Government’s increase to Employer National Insurance Contributions in autumn last year, in turn creating an additional financial burden on businesses, households, and the public sector. While many of the levers to address these challenges lie with the UK Government and could be managed more effectively in an independent Scotland, the Scottish Government remains committed in the meantime to using the powers available to us to support people across our nation with the cost of living pressures.