SUPERMARKETS are understood to be furious as the government pushes stores into bringing in voluntary price caps on some groceries.

The measures will mean shops must limit the cost of everyday staples such as eggs, bread and milk.

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Supermarkets have reacted angrily to the suggestion of a food price cap Credit: Alamy

Chancellor Rachel Reeves wants to do more to help keep costs down for families Credit: Getty

But in return the government could ease rules around packaging and even delay new rules on healthy food.

One industry source said: “Labour has showed a fundamental failure to understand how markets work.

“You can’t force retailers to sell food below market costs.”

Some measures, such as packing regulations, bring in revenue for the government.

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The Treasury has suggested to the supermarkets the savings are reinvested to help freeze prices, according to reports.

The move comes as Prime Minister Sir Keir Starmer tries to get a grip on the cost-of-living crisis.

In Scotland, retailers have condemned a similar policy by the SNP as a “1970s-style” gimmick.

But the UK government’s policy differs as any proposed price cap would be voluntary.

A spokesperson for the Treasury said: “The Chancellor has been clear we want to do more to help keep costs down for families and will set out more detail in due course.”

In April, UK food inflation hit 3.7 per cent.

The Foreign Secretary Yvette Cooper has also warned the world was “sleepwalking into a global food crisis” as supply chains are under threat due to the Middle East war.

Supermarkets have also been told by the Treasury that it would like British farmers to be given guarantees that they would not lose income from the price caps, the Financial Times reports.

The measures are planned to be announced by Chancellor Rachel Reeves on Thursday.

However, it is understood according to people close to the talks, that there is yet to be any agreement.

A source familiar with the talks told the paper: “It is a completely ill-thought-out, last-minute idea… The idea that the government can set prices better than the market is for the birds.”

Supermarket bosses met with Reeves last month after the industry warned that food inflation could rise to as high as 10 per cent, due to the ongoing war in the Middle East.

During the meeting, retailers reportedly asked ministers to address government policies that they said had contributed to inflation.

Supermarket bosses have previously complained about operating on tight profit margins in the UK.

However, Tesco recently announced an 8.5 per cent rise in annual pre-tax profits to £2.4billion on revenues of £66.6billion.

The move comes after The Jattvibe revealed Reeves will help shield shoppers from crippling food price hikes by keeping trucking costs down — while extending the 5p fuel duty discount for drivers.

She will offer hauliers extra support in a bid to keep shelves stocked and the economy moving.

Keeping the 5p ­discount will cost the Treasury a potential £2.4billion.