CMA Proposes 21 Measures to Reform UK Veterinary Services Market

Britain's competition watchdog concluded its investigation into the veterinary services market on March 24, setting out final reforms it said would start coming into force later this year. The Competition and Markets Authority's verdict, the result of a two-and-a-half-year inquiry, found the £6.3 billion sector leaving pet owners systematically in the dark on prices, ownership and medicine costs.

Under the new rules, practices must publish a comprehensive price list for standard services including consultations, common procedures, diagnostics, written prescriptions and cremation options. Prescription fees, for which many practices currently charge £30 or more, are to be capped at £21 for the first medicine and £12.50 for any additional medicines. Practices must also provide a written estimate in advance for any treatment expected to cost £500 or more, including aftercare costs, as well as an itemised bill, with emergency care the only exception.

The inquiry found an average increase in veterinary prices across the market of 63% between 2016 and 2023, well above the rate of inflation, alongside a lack of transparency for pet owners regarding many veterinary costs and services. Over 60% of practices are now owned by six large veterinary groups: CVS, IVC, Linnaeus, Medivet, Pets at Home and VetPartners. The CMA found that concentration carries a direct cost to consumers: pet owners pay 16.6% more on average at large groups than at independent practices.

Pet owners using a practice that is part of a larger chain can expect to see changes before Christmas, including standard price lists. Prices and information about who owns the surgery will be made available through the Royal College of Veterinary Surgeons' 'Find a Vet' service, which will share the data with third-party comparison sites. The CMA also proposed a ban on bonuses tied to offering specific treatments, a measure designed to shield clinical judgment from commercial pressure.

To make it easier for pet owners to purchase cheaper medicines online, veterinary businesses will be required to inform pet owners about the savings they can make by buying medicines online and to automatically provide owners of pets with an ongoing need for medication with a written prescription, enabling them to buy the medicine online.

Martin Coleman, chairman of the independent Inquiry Group, said "this is the most extensive review of veterinary services in a generation." The CMA backed the government's proposed reforms to the Veterinary Services Act which, for the first time, would make veterinary businesses as well as individuals accountable to an independent regulator. The RCVS will take a central role in monitoring compliance by businesses and individual practitioners, running the comparison service, with its costs funded by a levy on veterinary businesses in proportion to the size of their business.

Industry responses split along predictable lines. British Veterinary Association president Rob Williams said the majority of the CMA's measures focused on increasing transparency and information, which would help pet owners make more informed choices and support competition. BVA's own survey data found that 65% of vets said a prescription cap would risk practice viability.

The final report marks the end of the market investigation, with the CMA now having six months to put in place legally binding orders on businesses. Once the orders are made, nearly all remedies will be in place in the following three to twelve months. Smaller veterinary businesses will have three months longer than larger businesses to implement the changes. Secretary of State for Environment, Food and Rural Affairs Emma Reynolds said the government was focused on helping families save money on vet services by improving transparency and choice around pricing.