Retailers hit back at Chancellor John Healey over cost of living comments
Retailers have hit back following the new Chancellor of the Exchequer’s comments on the cost of living over the weekend, in which he said the Government would be watching out for signs of “price-gouging” and shoppers being ripped off.
Writing in The Sunday Telegraph, John Healey said people will be worried about the impact on their daily lives from the ongoing conflict in the Middle East, including the effect on energy prices, petrol costs at the pump, and the weekly shop.
Subscribe to TRBHe said that regulators will be watching closely for any suggestions that customers are being “taken for a ride at the pump or the till”. While stating that there had been no significant evidence of “price gouging,” he added: “I want to be blunt in reassuring the public that our regulators have the power to clamp down on it if it happens.”
In response, Andrew Opie of the British Retail Consortium, said: “Supermarkets operate in a highly competitive environment, delivering the most affordable food in Western Europe.
“The Government’s independent competition regulator, the CMA (Competition and Markets Authority), has repeatedly found that fierce competition between retailers, not government action, has kept food prices as low as possible.”
He added: “Many of the additional costs pushing up prices have been implemented by this Government, including higher National Insurance Contributions, increased packaging taxes and the continued failure to reform the outdated business rates system.
“Despite these pressures, retailers will continue to do everything they can to deliver great value for customers.”
Andrew Griffith, the shadow business and trade secretary, told The Telegraph: “Retailing is brutally competitive and prices are gong up because of Labour’s tax hikes, employment red tape and energy costs. As John Healey explores his new residence, he needs to look a bit closer to home to lower the cost of living.”
Earlier this year, Healey’s predecessor Rachel Reeves suggested that supermarkets cap food prices to help limit inflation due the Iran war.
However, this sparked a backlash from retailers with Stuart Machin, chief executive of M&S, describing the the proposal as “completely preposterous”.
Ken Murphy, chief executive of Tesco, said at the time: “We don’t believe that any sort of regulation on pricing in grocery is either necessary or desirable, because we operate in a highly competitive market.”
