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Marks and Spencer, along with fellow supermarkets, has pushed back against the government's proposal to cap the price of essential items.

M&S chief executive Stuart Machin has branded the scheme "completely preposterous", after retailers were urged by the government to voluntarilyfreeze the prices of key groceries.

Treasury secretary Dan Tomlinson confirmed that discussions with the sector had taken place "about the steps that they can take to support people with the cost of living", but stressed that supermarkets would not be compelled to cap prices.

The Treasury approached retailers on Tuesday with a proposal to freeze the price of certain produce in exchange for a relaxation of packaging regulations.

The deal would also potentially see a delay to forthcoming rule changes relating to healthy food.

The proposals were first reported by the Financial Times and follow a pledge made by the Scottish National Party (SNP) last month.

However, in Scotland the price cap is not voluntary, unlike the proposed arrangement in England.

Supermarket bosses have roundly rejected the proposal, with Machin making no secret of his fierce opposition to the idea.

Tomlinson argued that the move represents an effort to ease the burden on households, as conflict in Iran has raised fresh concerns over soaring prices.

"It's right that the government looks across the board at what more we can do - both government levers but also talking to industry about the steps that they can take to support people with the cost of living," he said.

Statistics reveal that the annual rate of food price increases stood at 3 per cent in April, exceeding the overall inflation rate of 2.8 per cent.

Warnings have been issued that food prices could surge by as much as 10 per cent by the end of the year.

Machin argued: "My advice is that the Government should reduce some of the tax and regulatory burden and free us up in a very competitive market."

Fellow supermarket chiefs were equally scathing, with former Sainsbury's boss Justin King branding the proposals "pretty silly" and warning they would lead to "all sorts of competition law issues".

King further argued it was "hypocritical" for the Treasury to demand retailers freeze prices while its own policies were fuelling inflation.

"If the government holds back on some of the things it's increasing... that will quickly flow through [to consumers]," he said.

Former Ocado chairman and Conservative peer Lord Stuart Rose was equally forthright, declaring: "I think the whole idea is the stuff of nonsense and it will never fly.

"This smacks of state control, it's idiotic, it's dangerous, and it'll never work."

The peer went on to stress that there is "no better system than a free market economy", cautioning that government intervention in pricing could trigger "unintended consequences".

Helen Dickinson, chief executive of the British Retail Consortium, warned: "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."