The Competition and Markets Authority (CMA) has set out its final reforms to the veterinary services market, which includes a cap on prescription fees and written policy practices.

The regulator launched a review into the market in 2023 after identifying several concerns that pet owners are often unaware of the prices of commonly used services, with no effective way of comparing vet prices.

The CMA said that an unprecedented response from both the public and the sector has helped to shape its final report, which has given the green light to measures that will "make the market more competitive".

Under a raft of measures, written prescription fees are capped at £21 for the first medicine and £12.50 for any additional medicines, and practices must now have written policies in place to ensure that vets are empowered to offer independent and impartial advice.

Furthermore, practices will now provide a written estimate in advance of any treatment expected to cost £500 or more, including an itemised bill. However, emergencies are the only exception for written estimates.

The CMA said it has been clear from the outset that modern legislation is overdue, with the current legal regime being 60 years old, "outdated, and applies to individual vets but not businesses and practices".

Therefore, the regulator said it is backing 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.

Chair of the independent inquiry group, Martin Coleman, said: "This is the most extensive review of veterinary services in a generation, and today’s reforms will make a real difference to the millions of pet owners who want the best for their pets but struggle to find the practice, treatment and price that meets their needs.

"Too often, people are left in the dark about who owns their practice, treatment options and prices – even when facing bills running into thousands of pounds. Our measures mean it will be made clear to pet owners which practices are part of large groups, which are charging higher prices, and for the first time, vet businesses will be held to account by an independent regulator.

"Our changes put pet owners at the centre but also help vets by enhancing trust in the profession and protecting clinical judgement from undue commercial pressure – and that is important to ensure our pets continue to get the best care."

Investment director at AJ Bell, Russ Mould, stated that there has been long-awaited clarity on reforms to the vet sector, but it may affect businesses and their financial performances.

He concluded: "The competition watchdog has been sniffing around the sector for some time, casting uncertainty over the likes of CVS and Pets at Home. Shares in both companies have bounced on the reforms as the new rules provide clarity to investors on the lay of the land.

"The reforms are expected to drive down prices which isn’t good for CVS and Pets at Home’s earnings prospects, but so much bad news around potential changes to the sector have already been priced into their shares. Their job is to now gain customers’ trust and win more business."

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