Supermarket bosses have slammed the idea of price caps on essential goods as “completely preposterous.”

Stuart Machin, chief executive of M&S, criticised reported suggestions that the Government could ask retailers to cap the cost of items like eggs, bread, and milk in exchange for regulatory relief.

Mr Machin said: “It’s completely preposterous.

“I don’t think the Government should be trying to run business.

“My advice is that the Government should reduce some of the tax and regulatory burden and free us up in a very competitive market.”

He also defended the current approach of supermarkets, noting the financial pressures already being absorbed by retailers.

Mr Machin said: “With food inflation at three per cent, I think it actually demonstrates that food retailers are taking a big responsibility to try and minimise passing through prices.”

He added that M&S is already selling some staple items at a loss, including milk, bread, and bananas.

Former Asda chairman Lord Stuart Rose was equally dismissive of the idea.

He said: “This smacks of state control.” and added: “It is idiotic.

“It is dangerous and it will never work.”

A Government minister denied any plans for price caps but confirmed ongoing discussions with supermarket chains.

Dan Tomlinson, a Treasury minister, said: “The Government is not looking at doing this.

“Instead, what we’re doing is looking across the economy at what are the different ways that we can help households.”

However, he later clarified the Government’s stance, ruling out mandatory intervention while confirming dialogue with the industry.

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Mr Tomlinson said: “Of course, the Government is going to be having conversations with supermarkets about what more we can do to support households, but no, we are not going to be implementing a mandatory price cap.”

The Financial Times reported that incentives under discussion could include relaxed packaging requirements and delays to planned healthy food regulations.

Helen Dickinson, chief executive of the British Retail Consortium, strongly opposed the idea of price controls.

She said: “Rather than introduce 1970s-style price controls and trying to force retailers to sell goods at a loss, the Government must focus on how it will reduce the public policy costs which are pushing up food prices in the first place.

“The challenge facing retailers is a combination of higher energy and commodity costs resulting from the Middle East conflict, and the soaring cost of the Government’s domestic policies.”

Ms Dickinson also emphasised the value offered to consumers in the UK grocery sector.

She said: “The UK has the most affordable grocery prices in Western Europe thanks to the fierce competition between supermarkets.”

A Treasury spokesperson said the Government remained committed to supporting consumers.

They 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.”

According to the FT, the Treasury asked supermarkets for guarantees that British farmers would not lose income from price caps.

The Government has also recommended supermarkets reinvest the savings from the regulation changes to freeze grocery prices.

Food inflation reached 3.7 per cent in April, adding to the cost of living pressures facing households.

The Foreign Secretary on Tuesday told an aid summit of the risk of “sleepwalking into a global food crisis” as a result of Iran’s blockade of the Strait of Hormuz.

Chancellor Rachel Reeves is to set out measures to help households with the cost of living on Thursday.

Writing in The Times, Ms Reeves said she had made decisions which were “responsible in the national interest.”

The Chancellor said: “I will not tolerate anyone exploiting a crisis to make a quick buck off the back of hardworking people.

“I am clamping down on price gouging, giving regulators new, focused investigatory powers.

“Where regulators identify concerning practices, they will be encouraged to name and shame.