Price controls on essential foods: partial business and regulatory impact assessment

Section 6: Implementation and Review

6. Implementation plans

The consultation seeks views on the principle of intervention, the design of any future food price cap scheme and the practical implications for consumers, businesses, regulators and the wider food supply chain.

As policy development remains at an early stage, no decisions have been taken regarding implementation timescales. The consultation seeks views on the practical implications of implementation, including the time businesses, local authorities and other stakeholders may need to prepare for any new requirements.

Should Ministers decide to take forward legislation following consultation, further engagement would be undertaken with retailers, producers, representative organisations, local authorities, regulators and other stakeholders to inform implementation planning. The illustrative draft provisions propose that key aspects of any scheme, including products in scope, applicable price caps and detailed operational requirements, would be set through secondary legislation following consultation.

Evidence gathered through the consultation and further stakeholder engagement will inform future decisions on implementation arrangements, commencement timescales, guidance requirements and any transitional measures that may be necessary to support implementation.

6.1 Post implementation review

The consultation seeks views on how the effectiveness of a food price cap scheme should be monitored and evaluated, including what indicators should be used to assess whether the policy is achieving its objectives and whether any unintended consequences arise.

At a minimum, any future evaluation would be expected to assess whether the policy has improved the affordability of essential foods, particularly for lower-income households. Consideration would also be given to what wider impacts – if any – the policy has had on food insecurity, consumer behaviour, dietary outcomes, food security, businesses, primary producers and the wider food supply chain. It should be noted that demonstrating a link between food price cap policy and these wider policy outcomes will not be straightforward and will require further policy development to consider.

The consultation further proposes that any legislation would expire unless Scottish Ministers make regulations to continue its effect. It is proposed that expiry would occur on the earlier of one year after publication of the statutory review report or eight years after the first price cap regulations come into force. This would help ensure that any decision to continue a scheme is informed by evidence of its effectiveness and impacts.

It is also proposed that Scottish Ministers should have the power to suspend and revive the operation of any price cap legislation. This is proposed to ensure that any price caps would not be in place any longer than considered necessary and could be paused or stopped when circumstances require it.