Politics latest: Former Asda boss slams ‘idiotic, unworkable’ reports of supermarket price caps – UK Times

The UK had previously announced that it would block Russian oil refined in other nations in a bid to “further restrict the flow of funds to the Kremlin”.

But the government has now shifted its stance, announcing on Wednesday that it will permit the import of jet fuel and diesel refined in third countries amid surging fuel costs.

But Foreign Affairs Committee chairwoman Dame Emily Thornberry has said she does not back the government’s decision, and said the people of Ukraine have been “very let down” by the move.

Lib Dem leader Sir Ed Davey said there was a “trade off” to be made over cost-of-living pressures and support for Ukraine after the government eased sanctions on some Russian oil.

He told Sky News: “The government has a real challenge here, because this appalling war in Iran … is pushing up the cost of living, is pushing up diesel and petrol prices.

“But we’ve also got to remember that we need to support our Ukrainian allies, they are fighting and paying a heavy, heavy price to beat that appalling Russian invasion, they’re on the front line of our defence and security, and the question is, has the government got that trade off right?”

He said his party would look at the detail of the proposal.

“This proposal is complicated … because they’ve got some proposals where they’re tightening the sanctions at the same time, so it’s a package, and it only came up late last night.

“We will look at it. We’re really, really worried if there’s any undermining of our support for Ukraine.”

With ministers reportedly urging supermarkets to cap the price of essentials like bread, eggs and milk amid fears of another inflation spike, our latest poll asks readers whether they support government intervention to keep food prices down. Vote below:

Treasury minister Dan Tomlinson insisted the UK could still be an international leader in support for Ukraine while easing sanctions on Russian crude oil.

Asked on BBC Radio 4’s Today programme whether it was right to put “people’s holidays” ahead of sending the clear signal to Vladimir Putin that the UK will pay the price necessary to disapprove of his actions, he said: “(I) reject the binary that you’ve offered me, there.

“I think it is entirely possible, and plausible, and as in fact, what the government is doing, to have one of the strongest sanction regimes in the world, to be leading the international effort to support Ukraine, and to make sure that Vladimir Putin doesn’t get what he wants from his things.

“And at the same time, to take responsible choices that that prioritise, rightly as we should, the domestic security, the family finances here in the UK, and the ability for important products to be available not just for holidays but for international movement of freight and goods and business activity as well.

“And that’s why this time-limited change has been announced by the government.”

Watering down sanctions on Russian oil is “insane” when the UK government is refusing to fully exploit North Sea resources, Kemi Badenoch said.

The Conservative leaders hit out after sanctions were eased, allowing for the import of jet fuel and diesel refined in third countries amid surging costs due to the Iran war.

A trade licence, which came into effect on Wednesday, permits the imports “indefinitely”.

The sanctions were imposed as part of the package of measures targeting Vladimir Putin’s economy after the full-scale invasion of Ukraine.

Mrs Badenoch said on social media: “After 18 months of ‘standing up to Putin’ the Labour govt quietly issued a licence allowing imports of Russian oil refined in third countries.

“Yesterday Labour MPs voted AGAINST UK oil and gas licences. We are now importing from Russia instead of drilling in the North Sea.”

Treasury minister Dan Tomlinson said he had not seen evidence that supermarkets are profiteering from higher prices.

He told LBC: “My personal view is that the supermarket sector is a highly competitive and important industry in the UK.

“I think that often profiteering happens when businesses and sectors are not competitive.”

But he said stronger powers being given to the Competition and Markets Authority would allow it to look closely at different industries.

“But right now, my view is that this is a competitive market, and I haven’t seen personally evidence of, you know, of significant price gouging in the supermarket sector, but that’s precisely why we want the CMA, when it comes to future shocks like this, to have the powers to look at it.”

The Treasury is reportedly urging supermarkets to limit food price rises as officials fear the Iran war will push up bills for households already struggling with the cost of living crisis.

The policy, which would be voluntary, would apply to common items such as bread, eggs and milk, according to the Financial Times.

In return, it’s expected the government would ease packaging regulations on supermarkets and potentially delay rule changes on healthy foods.

But ministers have this morning denied that the government is looking to impose a price cap on essential groceries.

Treasury minister Dan Tomlinson told Sky News “this isn’t something we’re looking at”.

A former supermarket boss has said any plans for government-imposed price controls are “idiotic” and “absolute nonsense”.

Speaking on BBC Radio 4’s Today programme, former Asda boss Lord Stuart Rose said the idea is “unworkable” and will “backfire” on ministers.

“I think the whole idea is the stuff of nonsense and it will never fly,” he said. “This smacks of state control.”

He continued: “I want to know who is going to pay the bill, who decides what products, who polices it, who is involved, is it small retailers, big retailers, I mean it is absolute nonsense.

“We have no better system than free market economy,” he said. “Free market economy does work. If you start pushing into one side you won’t get a reaction somewhere else. You’ll get the unintended consequences of trying to do something to keep prices…it’ll backfire and it’s impossible to police.

The people of Ukraine have been “very let down” by the government’s decision to relax sanctions on Russian crude oil, the Foreign Affairs Committee chairwoman has said.

Dame Emily Thornberry told BBC Radio 4’s Today programme: “We are talking about our allies in Ukraine who have been fighting a war bravely against Russia for years and years with our support.

“They have looked to Britain as one of their most important allies, and they don’t understand, given that we promised that we would stop this loophole in October, and we still haven’t done it. In fact, it seems to have got worse. People feel very let down.”

She said that Ukraine has been able to attack oil refining facilities, adding: “The capacity in Russia has gone down by 10%.

“It is really hurting the Russian economy and they believe that every bit of joint pressure they make with their allies is pushing Russia ever closer to ending the war because this is absolutely crippling their economy.”

A minister said the government needed to make sure it was “protecting the UK national interest” after it relaxed sanctions on Russian crude oil to allow for the import of jet fuel and diesel refined in third countries amid surging costs.

Treasury minister Dan Tomlinson told Sky News: “When there are international conflicts, we’ve just been talking about the conflict in Iran, talking about the conflict in Russia … what we have to do as a government is make sure that we’re protecting the UK national interest, making sure that this impact of conflicts that wash up on our shore, that we’re protecting individual families.”

He later added: “The government has announced yesterday this time-limited change to the rules around oil and refining given the extremes of the impacts of the conflict in Iran, and the impact of it washing up on our shores.”