Free and fair competition is a concept people across the world understand and, generally speaking, respect. The keen anticipation surrounding this summer’s Beijing Olympics reflects that. Yet while athletes should not be expected to run in a race where their rivals are given a head start, companies in UK public service markets often find themselves handicapped before the starting gun is fired.

For those who use our public services and for the taxpayer, the existence of markets to provide them is a good thing as, in theory, competition should drive up quality and increase efficiency. But anomalies and distortions prevent competition. Artificial barriers mean public spending is not always directed to the most efficient providers. This is especially unacceptable at a time when the economy is slowing and public spending is constrained.