A recent statement by Andy Burnham, the frontrunner to become prime minister, stressing his ambition to support the high street shops, has evoked hope among small businesses, including community pharmacies.
Burnham recently said on LBC that he plans to overhaul business rates to support small high street firms and to cover the cost through higher property taxes on large warehouses.
The announcement of Business rates for pharmacies by former chancellor Rachel Reeves during her Autumn Budget 2025 had upset the pharmacy sector.
Interestingly, for the GP practices and dental surgeries, these rates are reimbursed by the NHS.
Moreover, in January, the government spared pubs and live music venues from the 15 percent business rates announced during Budget 2025.
This has angered all the pharmacy organisations, and the business rates have come into force since April 1.
In reaction to Burnham's recent statement, the Company Chemists' Association chief executive said they would welcome any measures that help ease the pressures faced by pharmacy contractors.
“Community pharmacies are an essential part of local communities and play a vital role in supporting a thriving high street. However, they have faced years of sustained financial pressure, with funding failing to keep pace with rising operating costs.
"While recent investment is a positive step, community pharmacies remain under significant financial strain, with a substantial gap still existing between the cost of delivering NHS services and the funding available. We therefore welcome any measures that help ease these pressures for all pharmacy contractors, across all settings, to support the long-term viability of the sector.
"Community pharmacies are critical to ensuring patients can access essential healthcare close to home. Any investment or reform that helps secure their long-term viability will therefore help protect that access for the communities who rely on them.”
NPA submission
Last week, the National Pharmacy Association submitted evidence to the Low Pay Commission, which is considering its minimum wage recommendations for April 2027.
It stated that pharmacies are labour-intensive healthcare providers operating within a constrained NHS funding envelope, and without governmental support, many more pharmacies will close down.
It had also called for a business rates exemption for community pharmacy, similar to what the dentists and GPs enjoy, to relieve financial pressures.
The NPA also wants the government to account for minimum wage increases in future pharmacy funding settlements.
