OFT publishes its Annual Plan 2006-07

62/06    29 March 2006

In the OFT Annual Plan for 2006-07, published today, John Fingleton, OFT Chief Executive, and Philip Collins, OFT Chairman, set out how the OFT will work to deliver better regulatory services across the full range of its consumer and competition responsibilities, and achieve its mission of making markets work well for consumers.

Download the OFT Annual Plan 2006-07 (pdf 226 kb).

The OFT will continue to focus on the five priority areas identified in last year's Annual Plan where it aims to achieve greatest impact. Objectives for the coming year in these areas include:

• consumer credit - following the passage of the Consumer Credit Bill, the OFT will develop new guidance on consumer credit licensees' fitness and the use of penalties. It will develop a risk-based licensing model and improve internal processes within the OFT to share best practice and monitor work relating to finance and credit markets
• healthcare - the OFT will engage stakeholders to identify the issues which affect competition in healthcare provision and cause consumer detriment, this will include a conference on competition issues in healthcare in late 2006. The OFT will also target health scams and conduct an internet sweep in conjunction with its partners in the Medicine and Healthcare Products Regulatory Agency and Trading Standards Service (TSS) to identify scam 'miracle cures'
• construction and housing - work in this area is coordinated under three themes; inputs to construction (where our work on rooting out cartels is of most relevance); supply of new buildings; and services relating to housing (such as estate agency and repairs). A report summarising achievements in this area will be published before April 2007
• mass-marketed scams - the focus throughout the year will continue to be on enforcing the law against scammers and educating consumers to recognise scams. A further scams awareness campaign will be launched, simultaneously with the OFT's international partners in ICPEN, in February/March 2007 and we will publish the results of a major piece of research into the prevalence of scams in the UK
• interaction between government and markets - the OFT will continue to engage with local and central government to ensure a pro-competition and pro-consumer culture in the public sector.

The Annual Plan also welcomes the Government's decision to entrust the OFT with new roles in relation to consumer law and trading standards (see note 5). This will require a new partnership to be developed with the Trading Standards Service across the UK, and for the OFT to become a national voice and advocate for the TSS as well as a centre of excellence and intelligence. The OFT will also be taking on responsibility for Consumer Direct from 1 April. The data collected from Consumer Direct – an anticipated one and a half million calls from consumers throughout the UK per year – will be vital in gaining a better understanding of industries, practices and areas where consumer detriment is most significant, and targeting resources to specific sectors, regions and markets.

Philip Collins, OFT Chairman, said:

'Our economic well-being depends on having a productive domestic economy and ensuring businesses in all parts of the UK are competitive. The OFT will build upon its past successes and continue to pursue its mission to make markets work well for consumers and hence for business and the wider economy.'

NOTES

1. Under the Enterprise Act, the OFT is required to produce an annual plan setting out its main priorities and objectives for the financial year ahead. The plan published today follows a consultation upon a draft plan (press release 229/05).

2. The OFT is the UK's competition and consumer authority. Its mission is to make markets work well for consumers. Its vision is of competitive, efficient, innovative and fair dealing markets where standards of consumer care are high, consumers are empowered and confident about making choices and where businesses comply with consumer and competition laws but are not overburdened by regulation.

3. The OFT has a Board comprising a chairman, chief executive and five non-executive directors. The Board is responsible for strategic direction, priorities, performance, and decisions on individual market studies. The Audit Committee of the OFT advises on all aspects of audit, corporate governance, risk management and internal control within the OFT. It reports to the chief executive, in his role as accounting officer, and the OFT Board.

4. The OFT has a staff of about 700 based in London, and a representative in Scotland. Its annual budget is £55 million.

5. The Hampton report, published in March 2005, envisaged the creation of a new body, the Consumer Trading Standards Authority, which would take on the role of strategic leadership of consumer regulatory services. Following consultation, the Government decided to retain the link between competition and consumer law and policy and entrust the role envisaged for the CTSA to the OFT. This was announced in the Chancellor's pre-Budget Report of 5 December 2005 (see OFT statement of 5 December 2005).