The community pharmacy sector has voiced deep dismay after being excluded from business rates relief measures, and a new valuation review, introduced for some other high street businesses.
Last month, Prime Minister Andy Burnham announced a 20% cut in business rates for pubs, social clubs and live music venues in England, to come into effect in April.
A review is now being launched into how business rates are calculated for pubs and hotels in England and Wales, which could lead to a reform of the system.
Responding to the government’s announcement of a review into pubs and hotel business rates valuations, Henry Gregg, Chief Executive of the National Pharmacy Association said the exclusion of pharmacies was “disappointing”.
He said: “Our latest analysis shows that at least 200 pharmacies are at serious risk of closure due to increases in their business rates, with many others considering relocation or other reductions to services to patients in order to manage these costs.
“It is therefore disappointing to see pharmacies excluded from the support given to some other sectors.
“Unlike other business who pay rates, pharmacies receive 90 per cent of their income from the NHS and have no means to offset increases in business rates to patients. They deliver a vital health service and should be treated like GP and even NHS dentist colleagues by having their rates reimbursed by the NHS.”
A survey by the NPA showed that hundreds of pharmacy owners are considering closing down due to the impact of recent increases in business rates.
A Pharmacy Business poll also revealed that a vast majority of sector stakeholders support providing community pharmacies with business rates relief or direct NHS reimbursement.
About 86% of respondents said that community pharmacies should receive financial relief or reimbursement to offset operating costs.
