Pharmacy funding concerns remain after Budget announcements

Chancellor John Healey announced his Budget in Parliament today (28th October), setting out the Government’s spending plans for the coming financial year.

In terms of health and social care, the Budget confirmed the establishment of a new National Care Service and announced a review of NHS productivity, aimed at helping staff to spend more time with patients and less time on administration.  However, there were no specific pledges about supporting the community pharmacy sector in his Budget speech.

The Chancellor also announced a 3.9% increase to the minimum wage. This will be another big strain on pharmacy costs in addition to other inflationary cost increases and ever rising prescription and clinical service levels. Other changes for businesses include rates relief for those designated as retail, hospitality and leisure properties, which could be beneficial for a small proportion of pharmacies.

Community pharmacies are the anchors of our high streets but several of these changes could prove challenging for a sector already facing serious financial and operational pressures. Community Pharmacy England is analysing the full impact of today’s announcements and will be factoring all of this in as we continue to prepare for the next round of CPCF negotiations.

Janet Morrison, Chief Executive of Community Pharmacy England, said:

“Today’s Budget brings no clear sign of relief for pharmacy owners. The minimum wage increase will place yet another significant cost burden on community pharmacies at a time when businesses are already under intense financial pressure. And this comes on top of the continued challenges pharmacies face with medicines supply, dispensing at a loss, rising operating costs and workforce pressures.

Whilst there were some positives – such as an ambition to reduce NHS admin and some business rates relief – these won’t offset the cumulative impact of rising costs across the sector, and the outstanding funding gap.

Every day we hear from pharmacy owners struggling to keep their businesses viable whilst continuing to provide essential care for their patients and communities. We have repeatedly warned Government and the NHS about the consequences if these challenges continue to go unaddressed and will be making this point firmly in the upcoming CPCF negotiations. Community pharmacies are the anchors of our high streets and continue to deliver – generating more than £31 billion in net benefits for society every year – and if the Government wants to shift care closer to people’s homes, it must invest in a sustainable future for pharmacies.”