UK vets may have to have a licence and cap prescriptions for pet medicine at £21 under plans being considered by the government.

Ministers are also considering establishing a regulator for the veterinary sector, including inspections, a mandatory licensing system and published compliance reports to improve accountability and choice. Every vet practice could need an official operating licence – similar to GP surgeries and care homes – under proposals in a white paper.

Pet owners have faced high bills and little competition between veterinary practices, many of which have been bought up by monopolies. More than 60% of veterinary practices are owned in whole or in part by six groups: CV, Pets at Home, Medivet, IVC and VetPartners, which are owned by private equity investors; and Linnaeus, whose parent company is Mars Petcare, a subsidiary of the US confectionery group Mars.

Mandatory price lists and transparency over ownership structure could also be brought in under measures outlined in the white paper, published on Thursday.

This year the Competition and Markets Authority (CMA) found public satisfaction with the cost of services was “low” and that there was “not strong competition between veterinary businesses”, with large chains dominant.

Emma Reynolds, the environment secretary, said: “Pets are part of the family, but for too many households the cost of caring for them has become a real worry. These reforms will help owners avoid unexpected bills, compare prices more easily and get the best value care for their pets.

“We’re modernising a system that hasn’t been updated for 60 years, putting pet owners first while giving vets the modern framework they need to support the future of the profession.”

Pet owners spent more than £6.7bn on veterinary and other services in 2024, equating to £390 for every pet-owning household. Some spend much more: for example, surgery for cruciate ligament disease, a common procedure for dogs, can cost £5,000, sometimes more.

Ministers said the changes were needed because the industry today was radically different to the 1960s when the Veterinary Surgeons Act was introduced. At the time, the industry was largely made up of agricultural vet practices and small, family-run businesses. Now, most vets undertake small animal care and the practices are operated by a handful of monopolies.

Sarah Cardell, the chief executive of the CMA, said: “We back the government’s proposals, which include our recommendations on regulating the sector. For the first time, these proposals would ensure that vet businesses are accountable to an independent regulator, while offering consumers more protection and a fairer deal.”

This year the leading exotics animal vet Great Western Exotics – the only training centre in the UK for avian medicine – shut down after being bought by a large conglomerate. Campaigners have said the rise in private equity in the veterinary sector has reduced consumer choice and resulted in a focus on profit over pet care.