By Jeremy Meader
The Government must stop ignoring the ongoing billion-pound funding black hole that plagues pharmacy year after year if they hope for our sector to thrive.
Experienced pharmacies such as Jhoots are increasingly unable to make ends meet and keep their branches afloat, ultimately affecting customers, patients and employees.
While it is easy to look towards the C-suite operators in a business for any failings, at times such as these, eyes should be cast towards Whitehall and the offices for the Department of Health.
Pharmacies depend on the NHS for the majority of their income but are viewed as a private business by those in the corridors of power.
Earlier this year the Government heralded its £3.1 billion ‘record investment’ in community pharmacy despite being at a very minimum £1.2 billion short of the cash required to bridge the funding gap.
This deal was despite their own economic report finding that pharmacies actually spend between £4.3 and £5.7 billion on providing NHS pharmaceutical services - leaving a gap of £1.2 to £2.6 billion.
The report also found nearly half (47%) of pharmacies were not profitable in their last accounting year, according to their earnings before interest, taxes and amortisation.
The struggles of businesses in any sector aren’t new but for too long pharmacy has had to try to not just survive but thrive with little support in comparison to other healthcare sectors like hospitals and dentistry.
Of course, hospital waiting times are of vital importance. Nobody wants to see an elderly pensioner waiting hours for a bed and NHS dentistry is something we want for children.
But in the same breath it could be argued, quite fairly, that the same pensioner might not even need hospital treatment if they had a local pharmacy that was able to stay open.
Every single sector of healthcare operates with the focus of looking after patients and ensuring they have the best treatment possible as part of a wider machine for healthcare.
However, the recent Jhoots Pharmacy crisis shows just what can happen when the Government does not offer sufficient financial aid to pharmacies.
The company was spoken about in Parliament in mid-October with serious questions asked about what led to the non-payment of staff and closure of stores and about regulatory powers to act faster to protect patients.
Many of us working in the sector know how difficult balancing the books can be, especially when the Government does not offer sufficient funding. Pharmacy owners that have expanded rapidly, perhaps in the belief that the 2025 contract would be better have clearly found themselves over-stretched.
Sadly, it looks likely that jobs will be lost at Jhoots Pharmacy and stores will remain closed, but it is more than just a business being affected, patients suffer, with staff at the heart of their community suffering the most.
Pharmacies are community hubs that help people with the majority of health issues throughout their life, from pregnancy to looking after your baby’s first cold to prescriptions as a pensioner, we are always there.
The Government will often say plenty of positives about pharmacy but when it comes down to funding, somehow it is often a day late and a dollar short.
Now, more than ever, it is time for the Government to decide to invest in pharmacy due to the number of services provided that can take weight off the rest of the NHS.
Pharmacy First can offer immediate aid to seven common conditions across England. It seems ironic that some GPs appear to be making a last-ditch attempt to grab these services back.
The public should be incensed at this, goodness knows it’s hard enough to see a GP now, without them trying to row against the tide.
Wes Streeting needs to stamp this nonsense out quickly and commit to expanding not retracting Pharmacy First.
The mood music for both the forthcoming budget and pharmacy contract negotiations for 2026 would already suggest the Government is going to struggle to find enough cash to give pharmacies the money they’d hoped.
This is despite the Government’s own economic review highlighting a funding deficit and many contractors struggling month-to-month.
Heading into 2026, the unfortunate situation at Jhoots Pharmacy may well become more commonplace unless the Government stops ignoring the ongoing funding black hole in pharmacy.
Jeremy Meader is the Chief Wholesale Officer of Bestway Healthcare, overseeing brands such as Lexon, Wardles, and Bestway Medhub. Jeremy has over 25 years of experience in the UK pharmaceutical sector, and has worked in executive roles across the industry.
