The Healthcare Distribution Association (HDA) has expressed disappointment that the Autumn Budget, presented by Chancellor John Healey on Wednesday (28), has failed to provide any relief to medicines wholesale sector.
The trade body said the Chancellor has missed an opportunity to strengthen the resilience of the medicines supply chain and address the financial pressures faced the wholesalers.
The HDA pointed out that as a key component of the UK’s critical national infrastructure, medicines wholesalers deliver 95% of all NHS medicines, some 2.1 billion packs, to hospitals, pharmacies and GP practices across the UK.
Rising costs associated with business rates, the National Minimum Wage and National Insurance are placing increasing financial pressure on the sector, it added.
The HDA said that medicines wholesalers play a vital role in supplying life-saving treatments to patients and the NHS, hence it is unfair to conflate them with other warehouse operators.
It lamented that the business rates relief announced in the budget overlooks the medicines wholesalers.
Fuel costs
The HDA said the fuel expenses of its members have risen significantly due to the ongoing crisis in Iran.
"In July the Government overlooked our sector and offered VED relief only to HGVs over 3.5T. Today the Government has again overlooked our sector and only extended this exemption to search and rescue vehicles."
It said that extending Vehicle Excise Duty (VED) relief to vehicles operated by medicines wholesalers would help the sector.
The HDA said it would welcome the opportunity to work with the Chancellor and his officials to identify measures to strengthen the long-term financial sustainability and resilience of the medicines wholesale sector.
NHS Alliance disappointed
Responding to the chancellor's budget, the NHS Alliance Deputy Director of Policy David Williams said: "The chancellor rightly acknowledged the pressures posed by increased energy costs and inflation.
"Add to that the impact on the NHS of further planned industrial action and costs linked to the UK-US trade deal.
"There is precious little financial breathing space in the NHS, and the government must be realistic about what it expects the health service to deliver with the resources available.
"The additional £190 million for winter pressures is welcome, but short-term cash injections like this cannot fix the fundamentals.
"We look forward to working with the government on its planned review of productivity, focusing on the adoption of AI."
The chancellor has announced that Mark Bailie, the CEO of price comparisons website, Compare the Market, and a non-executive director of NHS England, will chair a review into how AI and technology can improve the health service’s productivity.
