Pulse.Assent

Euro Car Parts must now sell a depot in each of these areas to a purchaser approved by the Competition and Markets Authority (CMA), so that customers don’t lose out.

Euro Car Parts bought most of the Andrew Page business in October 2016, after the company went into administration. Both companies own a network of depots across the UK from which they sell car parts to independent garages and workshops and to larger national or multi-regional customers, including repair centre chains, vehicle fleets and roadside assistance companies.

A group of independent CMA panel members identified 9 areas in England where the 2 companies were close competitors and where the merger could significantly reduce competition for local customers.

The group did not consider that larger national or multi-regional customers would be adversely affected by the merger.

Professor Alasdair Smith, Inquiry Chair, said:

Following an in-depth investigation, we have found that this merger has the potential to drive up prices or reduce levels of service for customers in 9 local areas. That’s why we are requiring a depot in each area to be sold to a buyer approved by the CMA.

Outside of these areas, we did not find that the merger will further reduce competition compared to what would have happened if Euro Car Parts had not purchased Andrew Page.

The 9 local areas are: Blackpool, Brighton, Gloucester, Liphook, Scunthorpe, Sunderland, Wakefield, Worthing and York. Swindon had also been identified during the provisional findings stage, but new evidence came to light which resulted in the group deciding that competition would not be affected in this area.

Notes for editors

1. The CMA is the UK’s primary competition and consumer authority. It is an independent non-ministerial government department with responsibility for carrying out investigations into mergers, markets and the regulated industries and enforcing competition and consumer law.
2. The final report can be found on the case page.
3. On 10 March 2017, the CMA started its initial investigation and on 22 May 2017 the CMA referred it for a phase 2 investigation. Provisional findings were published on 14 September 2017.
4. All the CMA’s functions in phase 2 merger inquiries are performed by independent inquiry groups, chosen from the CMA’s panel members, and supported by CMA staff. The appointed inquiry group are the decision-makers on phase 2 inquiries.
5. The members of the inquiry group are: Professor Alasdair Smith (Inquiry Chair), Lesley Ainsworth and Rosalind Hedley-Miller.
6. The CMA’s panel members come from a variety of backgrounds, including economics, law, accountancy and/or business; the membership of an inquiry group usually reflects a mix of expertise and experience.
7. For more information on the CMA see our homepage or follow us on Twitter @CMAgovuk, Facebook, Flickr and LinkedIn. Sign up to our email alerts to receive updates on merger cases.
8. Media enquiries should be directed to: press@cma.gsi.gov.uk, 020 3738 6337.

A tailored approach to protect and encourage the supply of a wide range of supported housing has been set out by government today (31 October). All long-term housing will remain in the welfare system and a proposed ‘sheltered rent’ for sheltered and extra care housing will keep rent and service charge at an appropriate level, protecting the housing needs of older and vulnerable people.

Local areas will be taking a bigger role in providing short-term and emergency housing through a ring-fenced grant to local authorities by April 2020, allowing vulnerable people to access secure accommodation without worrying about meeting housing costs at a difficult point in their lives. The grant will be underpinned by a National Statement of Expectation setting out how local authorities should plan effectively for provision in their area.

Supported housing provides a home to some of the most vulnerable people in this country and the vast majority is provided for older people. The government knows the supply of these homes needs to grow as this country’s ageing population means that demand is forecast to increase.

Currently supported accommodation is funded through the welfare system, including the housing costs and extra support services. These reforms will ensure:

• funding certainty for the sector, and encouraging long-term investment and new supply
• local areas have a greater role in commissioning services
• councils have a stronger role in providing the right services for their local areas

Local Government Minister Marcus Jones said:

This government is committed to boosting the supply of new homes, and helping people to live independently and with dignity for as long as possible. This is why we are giving the supported housing sector the certainty of funding they need to get building new homes.

These reforms will deliver quality and value for money, funding certainty for the sector and give local areas a greater role in commissioning services.

Minister for Family Support, Housing and Child Maintenance Minister Caroline Dinenage said:

We value the important role supported housing plays and that’s why we have worked closely with providers and listened to their feedback to come up with solutions that will safeguard its future and improve support for those that need a home that is safe and secure.

The new flexible funding model and reforms will give housing providers certainty over future funding and drive up quality and provide value for money.

The supported housing sector support provides homes from older renters. It also provides a home for other vulnerable groups such as people with learning disabilities, mental ill health, homeless people and victims of domestic abuse.

The government’s latest policy statement is published online including further consultation on the detailed implementation of the flexible funding models for both sheltered rent and long term supported accommodation.

Further information

The consultation on the detailed implementation of the flexible funding model for supported housing will run until 23 January 2018.

Last week (25 October 2017) the government announced that the Local Housing Allowance rate will not be applied to the social rented sector.