The National Pharmacy Association has said that pharmacies in England will face at least £275 million in additional costs next year due to inflation and a rise in wages.
The NPA leaders warned this could affect the government's plan move health services into communities.
A new analysis by the NPA has stated that an 8.9 per cent uplift in NHS funding would only cover inflation, increased wage costs due to rises in the national living wage, and the continuing growth in prescription volumes.
The association warned that anything less would force local pharmacies to impose further cuts, and this would damage neighbourhood health services, increase pressure on GPs and undermine the promises made by ministers to shift care from hospitals into the community.
The additional costs for pharmacies include at least £159m to cover increasing wage costs and other inflationary pressures, and at least £104m to cover growing prescription numbers.
Pharmacies were awarded a 19 per cent increase in funding in April, but Ministers admit it has failed to fill the gap left by 40 percent real terms cuts over the previous decade.
It is estimated that the government funding fell £2.6bn short of the cost of providing NHS services, according to a NHS commissioned analysis.
NPA chief executive Henry Gregg said, “Pharmacies stand ready to help the government move care from hospitals into our communities as expert health centres on the high street. Expanding their role can ease pressure on the rest of the NHS and make it easier to get treatment and advice.
“Pharmacy funding has been badly eroded over the past decade, causing hundreds of pharmacies to close and forcing many more to their knees.
"We need to be clear about the scale of increasing costs facing pharmacies this coming financial year and the ongoing fact that the health service doesn’t cover the full cost of NHS pharmacy, so we can build up this vital service, not allow it to be further eroded."
Earlier, Community Pharmacy England had estimated that the impact of the National Living Wage increase on the sector will be £69-94 million per year.
