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Competitive neutrality

-High-level considerations
-Market creation
-Predictable demand
-Competitive neutrality
-Innovation through procurement

How to build and sustain competitive markets in an environment of increased devolution of accountability i.e. ensuring competitive neutrality. 

The issue here is that when the public sector creates a mixed economy, by allowing public, private and voluntary organisations to compete, then competitive neutrality policy insists there should be no discrimination against operators with different ownership structures or against public sector providers.

Public sector providers should face competition from private and voluntary providers. Working jointly with OGC on waste management, the Office of Fair Trading (OFT) found that discrimination, either actual or perceived, could impact on competition. It specifically recommended fair competition between in-house and private sector bidders, in its report referenced below.

References: A fair field and no favours - Competitive neutrality in UK public service markets, CBI & the Serco Institute, 2006.  More competition, less waste - Public procurement and competition in the municipal waste management sector - OFT, May 2006

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