Pharmacy sector leaders have expressed disappointment with Chancellor Rachel Reeves' spring statement, which offered no relief to community pharmacies struggling to keep their doors open.
National Pharmacy Association chief executive Henry Gregg said, "This Spring Statement will bring little comfort to hard pressed pharmacies facing sweeping cost increases in April.
"Pharmacies are essential to their communities, but the government has taken decisions to prioritise business rates support for pubs over the health needs of millions of people who use pharmacies every day.
"Pharmacies are not like pubs, cafes or restaurants. They receive 90 per cent of their funding from the NHS and cannot simply increase their prices to absorb an eye-watering business rates rise, along with other cost hikes.
"The government must urgently use some of their budget headroom to stabilise pharmacy finances or risk more pharmacies closing for good and leaving others with no choice but to cut back patient services."
The NPA had earlier estimated that pharmacies in England would face at least £275 million in additional costs in 2026 due to inflation and wage increases.
The softening of business rates for pubs and music venues in England would cost the Treasury an extra £100m a year.
In a LinkedIn post, the Independent Pharmacies Association (IPA) expressed disappointment that the spring statement offers "nothing to offset the rising costs that businesses, including community pharmacies across the country, will be facing in April."
"We have consistently asked the Government to extend to pharmacies the business rate rebate given to other NHS primary care providers like GPs surgeries and dental practices.
"Our sector is simply not being treated fairly.
"This further underlines the need for the government to ensure the pharmacy funding negotiations, which have now commenced, produce a fair settlement that addresses the current funding gap and recognises that the sector’s current parlous financial statement is not sustainable.
"The community pharmacy network has always been willing to play a bigger role in our health service. We have been forthcoming with solutions on how our sector can further support the NHS and reduce the costs for the Treasury, if they are willing to invest in our sector to save for the taxpayer."
Meanwhile, the negotiations for the 2026/27 Community Pharmacy Contractual Framework (CPCF) have begun.
The detailed discussions will cover funding, service changes, and other arrangements for pharmacies in 2026/27, as well as presenting an opportunity to consider longer-term plans for the sector.
