Appropriate Government

8.1 Few would argue that government is “joined up” on consumer issues. One problem is that government is both a regulator and enforcement officer and a service provider.

8.2 The overall responsibility for consumer policy rests with the Department for Business, Enterprise and Regulatory Reform. But consumer issues do not sit naturally with DBERR’s responsibility for promoting the interest of UK businesses as producers. There are also overlaps with the Department for Work and Pensions responsibilities toward pensioners and benefit claimants; the Ministry of Justice’s role as overseer of the civil justice system and the roles of the Department Health as the sponsor department for the Food Standards Agency and the Treasury as sponsor of the Financial Services authority. Where there are overlaps, there may be gaps.

8.3 Local Government also has a vital role, for example through Trading Standing Officers and Local Better Regulation Offices.

8.4 Liberal Democrats have called for the abolition of the DBERR, and fought the last election on a manifesto which included the creation of a separate Department of Consumer Affairs.

8.5 Although the OFT does much good work, it is significantly under-resourced and struggles to keep on top of abuses of market power.

Questions

  1. How should consumer policy issues be handled at Departmental level?
  2. Should there be any structural reforms to the OFT and Competition Commission, or is simply resourcing their main constraint?
  3. What is the proper role of local government in consumer protection?

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