By GB News (Politics) | Created at 2026-06-18 19:31:50 | Updated at 2026-06-18 21:17:57
1 hour ago
The boss of Tesco has warned Rachel Reeves against interfering in supermarket pricing, insisting retailers do not need Government intervention to keep food costs under control.
Britain's biggest supermarket said the grocery sector is already highly competitive, pushing back against proposals that could see ministers influence the price of everyday essentials.
Ken Murphy, Tesco's chief executive, criticised suggestions that the Government should play a greater role in determining what shoppers pay for staple items.
"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," Mr Murphy said on Thursday.
He argued that competition between retailers already helps keep prices in check.
"This market, this industry is very good at self-regulating from a price perspective," he added.
The comments follow proposals put forward by the Chancellor last month that could see supermarkets agree to cap the price of everyday essentials such as bread, milk and eggs in exchange for a reduction in regulatory requirements.
The idea was met with resistance from major supermarket bosses, who argued that price controls are unnecessary in a competitive market.
Tesco boss issues warning to Rachel Reeves
GBNEWS
Mr Murphy's intervention came a day after official figures showed inflation remained unchanged at 2.8 per cent in May, defying expectations that it would rise to three per cent.
Hopes of easing inflationary pressures have also been supported by a deal between Donald Trump and Iran to reopen the Strait of Hormuz, a key route for global energy supplies.
Mr Murphy maintained that rising prices have not become a significant problem thus far.
"Inflation hasn't really materialised as an issue so far," he said.
The idea was met with resistance from major supermarket bosses
The retailer's internal measure of grocery price increases stood at 2.2 per cent, which falls below both the pace of wage growth and the official inflation rate.
This relatively modest figure reflects the fierce rivalry between supermarket chains competing for customers.
Tesco has responded to competitive pressures by expanding its pricing initiatives, rolling out its Aldi Price Match scheme to over 2,000 Express convenience stores during the most recent quarter.
The UK's biggest grocer reported like-for-like sales growth of 1.8pc for the 13 weeks ending 24 May, a notable decline from 4.2 per cent in the preceding quarter and short of analyst predictions of approximately 2.3 per cent.
This relatively modest figure reflects the fierce rivalry between supermarket chains competing for customers
Total group revenue increased 1pc to £16.8billion, though shares fell 2.69 per cent following the announcement.
Mr Murphy attributed the weaker performance to Middle Eastern conflict affecting consumer confidence and a rain-soaked spring, rather than any underlying shift in demand.
"It's not a sign of a slowdown per se, or really a change," he said.
Morrisons similarly reported slower growth earlier this week, though Tesco maintained its full-year outlook.
