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  "path": "/money/rachel-reeves-supermarket-price-cap-plan",
  "publishedAt": "2026-05-21T17:50:12.000Z",
  "site": "https://www.gbnews.com",
  "tags": [
    "Rachel Reeves announces school holidays VAT cut for family days out",
    "Nationwide confirms free £275 bonus for millions in Fairer Share update",
    "Jet2 and EasyJet issue major update as airlines cancel flights amid fuel shortages",
    "The GB News Editorial Charter"
  ],
  "textContent": "\n\n\nChancellor Rachel Reeves's proposal to introduce price caps on supermarket essentials has triggered fierce criticism from Britain’s dairy farming sector.\n\nIndustry leaders have warned the policy could threaten the survival of farms already under severe financial pressure.\n\n###\n\n\n\n\nRobert Craig, chairman of the Royal Association of British Dairy Farmers, said freezing prices on products such as milk while production costs continue rising would place unsustainable pressure on producers.\n\nMany dairy farms are currently operating close to break-even, with milk prices down by 30 per cent compared with the previous year.\n\n###\n\n\n\n\nTRENDING\n\nStories\n\nVideos\n\nYour Say\n\n###\n\n\n\n\nMr Craig criticised the proposal directly and said: \"It's a lot of nonsense. It'll get pushed back onto primary producers.\"\n\nHe warned supermarkets would likely seek to offset the impact of any price cap by forcing suppliers to accept lower returns.\n\nMr Craig, who manages a herd of 1,600 cattle, said his own business is currently £1.4million down on revenue compared with last year.\n\nHe added: \"We could not survive at this milk price long term.\"\n\nCurrent rates offered by major dairy processors underline the pressure facing farmers across the sector.\n\nArla Foods is currently paying farmers close to 36 pence per litre, while Müller is offering 34.5 pence per litre.\n\n###\n\n\n\n\n###\n\n\n\n\n###\n\n\n\n\nMr Craig argued that introducing price controls would weaken the competitiveness of British dairy producers and encourage retailers to rely more heavily on imported products.\n\nFarmers said red diesel prices have risen sharply, while fertiliser costs have increased by as much as 40 per cent.\n\nJamie Blackett, a dairy farmer based in Dumfries and Galloway, warned price controls could have serious consequences for milk production across Britain.\n\nMr Blackett said: \"Price caps have never worked.\"\n\n### LATEST DEVELOPMENTS\n\n\n\n\n  * Rachel Reeves announces school holidays VAT cut for family days out\n  * Nationwide confirms free £275 bonus for millions in Fairer Share update\n  * Jet2 and EasyJet issue major update as airlines cancel flights amid fuel shortages\n\n\n\n###\n\n\n\n\n###\n\n\n\n\n\"In the dairy industry, if there was a price cap, to the point where we weren't making any money, we'd have to cull cows and the national herd would shrink.\"\n\nHe explained that farmers facing cash flow difficulties could be forced to send cattle to slaughter in order to reduce losses, potentially leading to reduced milk supply and higher prices over time.\n\nAccording to Farmers For Action, almost 50,000 farms have closed across the United Kingdom during the past 30 years.\n\nThe organisation said the pace of closures is now accelerating, with around 5,000 farms shutting annually, equivalent to roughly 2.5 per cent of remaining farms each year.\n\n###\n\n\n\n\n###\n\n\n\n\nVictoria Atkins, the shadow environment secretary, also criticised the Chancellor’s proposals and linked rising food prices to broader Government policy.\n\nMs Atkins said: \"Rising food prices have been created, in large part, by anti-business policies of this Labour Government.\"\n\n\"Rocketing energy prices, business rates, and costly red tape, have all contributed to this food and farming emergency.\"\n\n###\n\n\n\n\n###\n\n\n\n\nShe described the proposal as a \"Soviet-style solution\" and warned it could ultimately increase food prices further.\n\nThe Chancellor’s plans emerged earlier this week and would reportedly involve price caps on around 20 household staple products in exchange for reducing regulatory burdens on supermarkets.\n\nAndrew Bailey, Governor of the Bank of England, has also reportedly cautioned against introducing the scheme.\n\nAccording to the Office for National Statistics (ONS), food inflation stood at 3.6 per cent in the year before the conflict involving Iran escalated, although some forecasts suggest it could reach double figures by the end of the year if energy and supply pressures continue rising.\n\n###\n\n\n\n\n\n\n\n\n\n\n**Our Standards: The GB News Editorial Charter**",
  "title": "Rachel Reeves's 'nonsense' supermarket price cap plans could force British dairy farms out of business"
}