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Rachel Reeves's reported plan for food price caps has been branded "completely preposterous" by the boss of M&S. The Government is said to have urged supermarkets to limit the price of products such as eggs, bread and milk in return for the lifting of some regulations amid concerns over rising inflation.

But M&S chief executive Stuart 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.

"With food inflation at 3%, I think it actually demonstrates that food retailers are taking a big responsibility to try and minimise passing through prices."

He added that he had "no direct communication" with the Government about the reported proposals.

Former Asda chairman Lord Rose slammed a potential cap as "nonsense".

He told BBC Radio 4's Today programme: "This smacks of state control. It is idiotic. It is dangerous, and it will never work."

Treasury minister Dan Tomlinson denied plans for price caps but confirmed that the Government is holding talks with supermarkets amid concerns over rising inflation.

Helen Dickinson, the chief executive of the British Retail Consortium, the leading trade association for retailers, 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."

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."