Asda chair says grocery price cap ‘won’t work’

The chair of Asda has criticised government proposals for a price cap on some grocery items for British supermarkets.

It was reported this week that the prime minister was considering a voluntary cap on every day essential items like bread and milk to help consumers during the cost-of-living crisis.

On Tuesday, Lord Rose told ITV News that the voluntary scheme “won’t work” and that the move cold have “unintended consequences”.

The comments come after Asda announced that it had bought petrol station giant EG Group for around £2.3 billion.

Under the deal, Asda will take over EG’s UK and Ireland business comprising 350 petrol stations and more than 1,000 food-to-go locations.

Lord Rose, who is also currently chairman for EG Group, was appointed to Asda's board of directors in December 2021.

He told ITV News: “I’ve been around in retail for a long time, we are a very efficient industry. Grocers are exceptionally good at what they do. I would warn any government of any complexion to be very vey careful about interfering with markets. Markets are funny things, they do what they want to do. Once you start going and trying to interfere you might get an unintended consequence."

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