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Suppliers of branded goods including baked beans and pet food have “pushed up prices by more than their costs”, according to the competition watchdog.

The Competition and Markets Authority (CMA) has been examining 10 product categories in a bid to see if shoppers, already struggling amid the continuing cost of living crisis, are being ripped off.

It said that while some increases were justified, to cover rising costs from elements such as energy and ingredients, there was clearly some profiteering – a finding the consumer group Which? described as “shocking”.

“The evidence collected by the CMA indicates that, over the last two years, around three-quarters of branded suppliers in products such as infant formula, baked beans, mayonnaise, and pet food – have increased their unit profitability and, in doing so, have contributed to higher food price inflation“, the regulator’s statement said.

It went on to explain, however, that the shifts were likely to have backfired somewhat as shoppers had clearly switched to cheaper, supermarket own brand, alternatives in a bid to save cash.

The regulator will hope that the competition will help prices of branded goods come down.

But brands told the inquiry that when their costs started to fall they would offer promotions to customers, rather than cut the standard costs of their products.

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‘This cannot carry on’

The CMA said that more study was needed, including in the baby formula sphere that has been the subject of work by Sky News and seen the World Health Organisation declare that families were being “exploited”.

However, it did find evidence of unjustified price increases, with costs to consumers up by 25% over two years, and cited concern that two companies, Danone and Nestle, control 85% of the market.

Calls for baby formula price cap will rise


Tom Parmenter - News correspondent

Tom Parmenter

National correspondent

@TomSkyNews

By laying out the simple fact that the formula milk price rises parents face in the shops do not equate with the “input costs” of making the product, the CMA is putting the formula industry firmly in the spotlight.

It’s already being called out as profiteering by campaigners, but the regulator is now singling out the formula industry for further interrogation.

It says quite clearly: “Evidence suggests that branded suppliers of baby formula have also increased their prices by more than their input costs.”

This year Sky News has tracked the desperate measures some families are having to take to feed their babies – it’s upsetting, stressful and ultimately unsafe for babies.

Experts have warned the high prices have put the nation on the brink of a “public health crisis” and earlier this month the World Health Organisation told Sky News that families were being “exploited” on pricing.

The CMA also highlights that the formula milk market is different to other food products – it is dominated by two multinational manufacturers – and that the public health messaging around it needs improvement for parents.

All the brands on the market meet minimum nutritional standards. Whether you buy the cheapest brand from Aldi for just under £10 or the most expensive at nearer £20.

The next stage of the CMA’s work will take months, but it appears determined to establish what needs to change. The calls for a price cap are only likely to increase.

A spokesperson for Danone UK & Ireland, the makers of the Cow & Gate and Aptamil brands, said it had minimised price increases and launched smaller, lower-priced pack sizes to help parents’ budgets.

“In Danone’s experience the formula milk market is competitive. We are committed to best practices to maintain this and will work constructively on ways we can continue to deliver value and innovation to parents. We will also continue to engage with the CMA over the coming months,” they said in a statement.

A Nestle spokesperson told Sky News: “Our goal has always been to keep products affordable and accessible for parents while still paying fair prices to our suppliers, including farmers.

“There have been significant increases in costs but we have been working to cut our costs wherever possible and only increase prices as a last resort.”

The CMA also declared that it was going to review supermarket loyalty schemes in the next phase of its investigation.

Front and centre of that is the offering of promotions only to customers who sign up to their loyalty cards.

The industry group for manufacturers responded to the CMA’s conclusions by suggesting that the pricing reflected value.

Karen Betts, chief executive of The Food and Drink Federation said: “Across our sector margins are at a 40-year low, insolvencies have doubled and investment has dropped by more than a third.

“Shoppers in the UK can take some comfort from the fact that, even with the levels of inflation we’ve seen in recent months, food and drink prices here remain lower than average EU grocery prices.

“The UK grocery market is highly competitive and offers a wide choice of products at a range of prices.

“Where branded products are more expensive than own-brand, this is because of the constant investment in quality and innovation that brand-owners make.

“If that investment doesn’t happen here in the UK, the amount of imported food and drink will certainly go up – with consequences for jobs, competitiveness and food security.”

But Sue Davies, head of food policy at Which?, said of the CMA’s findings: “Its evidence reinforces Which?’s concerns that shoppers relying on convenience store branches of the big supermarkets, which rarely stock the cheapest own-brand ranges, may struggle to find more affordable food.”

She added: “It’s positive that the CMA is set to review supermarket loyalty pricing as a recent Which? investigation found these deals aren’t always as they seem.

“In September we asked the regulator to look at whether supermarkets could be hiking ‘regular’ prices to make it appear that loyalty scheme customers are getting a better deal than they really are.”

The regulator issued its update after previously finding that higher prices in stores were not the result of weak competition between supermarket chains.

The watchdog did, however, demand tighter rules over so-called unit pricing – costs per item covering versions of the same product – to bolster price transparency.

It also previously found that supermarket fuel operators had charged motorists an extra £900m in 2022 by raising their margins on both petrol and diesel sales.

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Labour dealt historic loss in Caerphilly by-election – as Plaid Cymru win seat

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Labour dealt historic loss in Caerphilly by-election - as Plaid Cymru win seat

Plaid Cymru have won the by-election in the Senedd seat of Caerphilly for the first time.

The Welsh nationalist party secured 15,960 votes – and candidate Lindsay Whittle cried as the result was announced.

Mr Whittle is 72 years old and had stood as a Plaid candidate 13 times since 1983. He will now hold the seat until the Welsh Assembly’s national elections next year.

This by-election was widely regarded as a two-horse race between Plaid Cymru and Reform UK, and the result marks a considerable blow for Nigel Farage.

His candidate Llyr Powell received 12,113 votes – denying a victory that would have strengthened claims that Reform can convert a large lead in opinion polls into election wins.

Nonetheless, the party’s performance is a marked improvement on 2021, when it received just 495 votes.

More than anything, the result is a humiliating and historic defeat for Labour, who had held Caerphilly at every Senedd election since it was created in 1999 – as well as the Westminster seat for over a century.

Its candidate Richard Tunnicliffe secured 3,713 votes and finished in third place, with Welsh Labour describing it as a “by-election in the toughest of circumstances, and in the midst of difficult headwinds nationally”.

Turnout overall stood at 50.43% – considerably higher than during the last ballot back in 2021.

Giving his acceptance speech after the result was confirmed, Mr Whittle began by paying tribute to Hefin David – who was Welsh Labour’s Member of the Senedd for Caerphilly until his death in August.

“He will be a hard act to follow,” Mr Whittle said. “I will never fill his shoes – but I promise you, I will walk the same path that he did.”

The Plaid politician described how he had been “absolutely heartened” by how many young people were involved in the by-election – and said the result sends a clear message.

He said: “Listen now Cardiff and listen Westminster – this is Caerphilly and Wales telling you we want a better deal for every corner of Wales. The big parties need to sit up and take notice.

“Wales, we are at the dawn of new leadership, we are at the dawn of a new beginning – and I look forward to playing my part for a new Wales, and in particular, for the people of the Caerphilly constituency. I thank you with all my heart.”

Mr Whittle quipped Plaid’s victory “was better than scoring the winning try for Wales in the Rugby World Cup”.

And looking ahead to the next year’s elections, he added: “[This] result shows what’s possible when people come together to back practical solutions and protect what matters most.

“We’ve beaten billionaire-backed Reform and, with the same determination, we can do it again in May 2026. Caerphilly has shown the way – now Wales must follow.”

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How tactical voting helped Plaid Cymru

Speaking to Sky’s chief political correspondent Jon Craig just before the declaration, Plaid Cymru leader Rhun ap Iorwerth said: “There’s clearly a real significance to the result – we are seeing the disillusionment with Labour writ large. I’ve heard it on hundreds of doorsteps, we’ve seen it in opinion polls.”

He conceded there was tactical voting in this by-election – with Labour and Conservative supporters alike backing Lindsay Whittle to keep out Reform.

However, Mr ap Iorwerth added: “I’ve spoken to literally hundreds and hundreds of people who told me – time and time again – ‘I’ve been a Labour supporter all my life, and we’re backing you this time.’

“Not begrudgingly, but because they see that’s the direction we’re going in – not just in this by-election, but as a nation. I’m calling on people to get behind that positive change – not just today, but ahead of next May.”

First Minister Eluned Morgan congratulated Mr Whittle on his return to the Senedd and said: “Welsh Labour has heard the frustration on doorsteps in Caerphilly that the need to feel change in people’s lives has not been quick enough.

“We take our share of the responsibility for this result. We are listening, we are learning the lessons, and we will be come back stronger.”

The Conservatives and the Liberal Democrats were among the parties who lost their deposits.

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Royals visit to meet Pope Leo at Vatican is welcome relief for King Charles engulfed in Prince Andrew revelations

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Royals visit to meet Pope Leo at Vatican is welcome relief for King Charles engulfed in Prince Andrew revelations

It was a welcome designed to catch our attention, for a visit that meant everything to the King.

The Swiss guard, standing to attention as the UK’s national anthem played out in the courtyard outside the Apostolic Palace.

Queen Camilla, wearing a distinctive black mantilla as a mark of respect to the Pope, as they made their way inside to meet Pope Leo XIV for the first time.

We know King Charles had built a relationship with Pope Francis before his death, now it appeared he was building a friendly rapport with his predecessor, as Pope Leo and the King happily talked away, both in English, meaning their conversation flowed more naturally.

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Will King and Pope distract from Andrew?

But while friendships between heads of state do matter diplomatically, this was also about making history.

Inside the Sistine Chapel, they prayed alongside each other. The first time a monarch and a pontiff have done that for 500 years, since Henry VIII broke away from the Catholic Church.

Pope Leo greets King Charles and Queen Camilla at the Vatican. Pic: AP
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Pope Leo greets King Charles and Queen Camilla at the Vatican. Pic: AP

Pope Leo and Archbishop of York are joined by the King and Queen during an act of worship in the Sistine Chapel. Pic: Vatican Media/Reuters
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Pope Leo and Archbishop of York are joined by the King and Queen during an act of worship in the Sistine Chapel. Pic: Vatican Media/Reuters

With King Charles also the supreme governor of the Church of England, the optics could not have been more significant for relations between the two faiths.

If you wanted to see how much King Charles’s interfaith work is appreciated, it came at the basilica of St Paul’s outside the walls.

An abbey with long-held links with English monarchs, where he was given the ceremonial title of royal confrater, and a special seat was made just for him and his heirs.

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Alongside religious matters, the two men talked publicly about their shared passion for the environment ahead of the UN’s climate conference COP, taking place in just over a week’s time.

With the King sent here on behalf of the government, and the foreign office emphasising how the Holy See is a vital global partner, we really saw brought into focus the soft power of the royals and the church, and how influential both can be.

King Charles's visit brings into focus the soft power of the royals. Pic PA
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King Charles’s visit brings into focus the soft power of the royals. Pic PA

King Charles at a garden reception at the Pontifical Beda College, where men prepare for the priesthood. Pic: PA
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King Charles at a garden reception at the Pontifical Beda College, where men prepare for the priesthood. Pic: PA

The interactions between the King and Pope showed a shared interest in a range of global issues.

But as the head of the Catholic Church for England and Wales, Cardinal Vincent Nichols pointed out to me, here are also two heads of state who sadly have issues around allegations of historical sexual abuse hanging over their institutions, and the decision on how to address that publicly.

There will be relief that there were no updates on the Prince Andrew problem today.

But despite Andrew vehemently denying that he has done anything wrong, revelations have kept coming.

And that is where the jeopardy lies for the royal family as they try to draw our attention back to important moments like this.

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Labour’s dominance in Caerphilly has crumbled like cheese – but a Reform win isn’t guaranteed

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Labour's dominance in Caerphilly has crumbled like cheese - but a Reform win isn't guaranteed

In 1645, the stronghold of Caerphilly’s famous medieval castle was besieged and captured by the forces of Oliver Cromwell.

And as the polls closed at 10pm after a bruising by-election battle, the Labour stronghold of Caerphilly was in grave danger of being captured by the forces of Nigel Farage and Reform UK in 2025.

Famous for the three Cs of coal, cheese and its castle, Caerphilly has been represented at Westminster by Labour MPs for more than a century and in Cardiff since 1999, when the Welsh Assembly was created.

That’s about to change. Labour’s vote – once as impregnable as the castle – has crumbled like Caerphilly cheese, and the Tories, Lib Dems and Green Party are nowhere.

Pic PA
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Pic PA

But Reform’s UK hopes of a famous victory in Caerphilly could be dashed by another political party hopeful of making a huge breakthrough in Wales, Plaid Cymru, second to Labour in last year’s general election and in every election for the Senedd since devolution.

As he arrived at the count at Caerphilly Leisure Centre shortly before the polls closed, Plaid Cymru’s veteran candidate, Lindsay Whittle, 72, was remarkably cheerful. Asked if he was going to win, he declared, punching the air: “I certainly hope so!”

An opinion poll in the constituency last week put support for Reform UK at 42%, Plaid Cymru 38%, Labour a dismal 12%, the Conservatives in lost deposit territory at 4%, along with the Greens at 3% and the Lib Dems barely registering at 1%.

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Unlike Cromwell’s forces, who arrived in Caerphilly on horseback nearly 400 years ago, Mr Farage galloped into the constituency on polling day in a fast car, in what was his third visit of the by-election campaign to the constituency.

A victory for Mr Farage’s candidate, 30-year-old Llyr Powell, would leave Reform UK on the road to further triumphs and have an impact on UK politics far beyond the Welsh Valleys. It would be a pointer to massive Reform UK gains in local, Scottish Parliament and Welsh Senedd elections next year.

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Pic: PA
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Pic: PA

It would turn the mood of Labour MPs from its current gloom and trepidation into blind panic and would convince them – if they were not convinced already – that Mr Farage is on the march to Downing Street and many of the 2024 Labour intake will lose their seats at the next general election.

But let’s not rule out a Plaid victory. That would send shockwaves throughout Wales and be seen as a clear signal that Labour’s 26-year dominance of the Welsh government is about to come to an undignified end.

The only certainties tonight are humiliation for Labour and near-wipeout for the Conservatives and Lib Dems.

The only uncertainty is whether it’s Reform UK or Plaid Cymru whose troops – like Cromwell’s in 1645 – capture Labour’s Caerphilly stronghold.

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