Recommendation 12

Rising prices for veterinary services cannot be explained solely by increased operating costs or higher expectations for standards of care. We agree with the CMA that market consolidation has been a major contributing factor to price increases and welcome its investigation and the overall direction of its proposed remedies. We are concerned, however, about the potential unintended consequences of the remedial proposals. In rural and isolated areas, limited provision means that market competition is often not the primary concern. There is a risk that additional regulatory burdens may lead to increased costs rather than improved competition. The proposals may also require independent and mixed practices to adapt or fundamentally change their business models, particularly where small animal services currently support the viability of other services. Care must therefore be taken to ensure that reforms do not inadvertently weaken overall service provision or access to care, particularly in geographically isolated areas as animal welfare must remain paramount. (Conclusion, Paragraph 37)