Tag Archives: HM Government

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News story: CMA set to remove bus undertakings in Bristol

The undertakings had been put in place following the 1989 merger of local bus companies Badgerline and Midland Red West which was investigated by the Monopolies and Mergers Commission (MMC). The MMC ruled that the merger would remove competition for bus services contracted by the former Avon County Council. Local authorities tender for – and subsidise – unprofitable bus services to maintain important transport links for residents.

Badgerline was subsequently renamed FirstGroup Holdings Limited (a subsidiary of FirstGroup plc), which then became subject to the restrictions, including a cap on the amount they could receive from the local authority for running a tendered service – and a requirement to return any excess profit from such services.

The Competition and Markets Authority (CMA) has been reviewing the undertakings since January to see if there has been any change of circumstances which justifies their removal or variation.

The CMA has found that FirstGroup’s share of tendered bus services in the region has reduced significantly since the MMC report and that in the most recent tender rounds, FirstGroup did not win any contracts at three of the four Local Transport Authorities. The CMA engaged with local stakeholders and no party that we spoke to argued that the undertakings were having a beneficial effect and should be retained.

Given these changes and the increased level of competition between operators when the relevant local authorities contract bus services, the CMA has provisionally decided that there is no longer any need for the protection given by the undertakings.

The CMA is now consulting on this provisional decision and invites responses via the review case page, where all information relating to the review including the provisional decision is available.

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Speech: PM statement: General election 2017

I have just been to see Her Majesty the Queen, and I will now form a government – a government that can provide certainty and lead Britain forward at this critical time for our country.

This government will guide the country through the crucial Brexit talks that begin in just 10 days, and deliver on the will of the British people by taking the United Kingdom out of the European Union.

It will work to keep our nation safe and secure by delivering the change that I set out following the appalling attacks in Manchester and London – cracking down on the ideology of Islamist extremism and all those who support it. And giving the police and the authorities the powers they need to keep our country safe.

The government I lead will put fairness and opportunity at the heart of everything we do, so that we fulfil the promise of Brexit together and – over the next 5 years – build a country in which no one and no community is left behind.

A country in which prosperity and opportunity are shared right across this United Kingdom.

What the country needs more than ever is certainty, and having secured the largest number of votes and the greatest number of seats in the general election, it is clear that only the Conservative & Unionist Party has the legitimacy and ability to provide that certainty by commanding a majority in the House of Commons.

As we do, we will continue to work with our friends and allies in the Democratic Unionist Party in particular. Our 2 parties have enjoyed a strong relationship over many years, and this gives me the confidence to believe that we will be able to work together in the interests of the whole United Kingdom.

This will allow us to come together as a country and channel our energies towards a successful Brexit deal that works for everyone in this country – securing a new partnership with the EU which guarantees our long-term prosperity.

That’s what people voted for last June.

That’s what we will deliver.

Now let’s get to work.

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News story: CMA will clear fostering services merger after sales

The National Fostering Agency Group (NFA) and Acorn Care and Education Group (Acorn) are 2 of the largest national providers of independent fostering placement services to local authorities across Scotland, England and Wales, helping them match vulnerable children with foster carers.

In January 2017, the Competition and Markets Authority (CMA) stated that the deal would face an in-depth investigation unless NFA could address concerns over a reduction in competition in 3 areas in the UK in which the companies overlap within the framework agreements put in place by groups of local authorities – Wales, Norfolk and Luton (including the wider Central Bedfordshire/Bedford area).

The CMA had found that less competition would make it more difficult for the local authorities involved to ensure value for money in framework tenders.

To avoid being referred for an in-depth phase 2 investigation, NFA proposed selling Acorn businesses in Wales, Norfolk and Luton (including the wider Central Bedfordshire/Bedford area) to another provider, BSN Social Care. This would include transferring all relevant carers and associated staff to enable BSN Social Care to replicate the competitive constraint provided by Acorn prior to its purchase by NFA.

After consulting on these undertakings, the CMA is satisfied that the sales will protect competition in the affected areas and the ability of the local authorities concerned to obtain good value when tendering for fostering services.

All information on this merger can be found on the case page.

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