Key Summary
- Unlike pubs, cafes or restaurants, pharmacies receive 90 per cent of their funding from the NHS.
- They cannot increase prices for patients, but are forced to absorb "eye watering" increase in prices.
- Pharmacies are also denied the business rate support that is available to GPs and other parts of the NHS
National Pharmacy Association chief executive Henry Gregg has attacked the Labour government and chancellor Rachel Reeves for sparing pubs and live music venues from the 15 percent business rates announced during Budget 2025, but not providing any relief to the struggling community pharmacy sector.
“It’s simply outrageous that the Government should offer business rate relief to pubs, but ignore pharmacies that play a vital health role on thousands of our high streets.
"This increase will push some pharmacies to the brink of collapse.
“Pharmacies are essential to their communities but the government have taken a decision today to prioritise pubs over the health needs of millions of people who use pharmacies every day.
"It’s an insult to hard pressed pharmacists who are still struggling under the effects of historic NHS underfunding that simply isn’t sufficient to pay inflated business rates, medicine prices and their other bills."
Gregg pointed out that unlike pubs, cafes or restaurants, pharmacies receive 90 per cent of their funding from the NHS.
They cannot increase prices for patients, but are forced to absorb an "eye-watering increase" in prices.
"Denying pharmacies the business rate support that is available to GPs and other parts of the NHS is yet another example of them being treated as second-class citizens in our health service. We should treat dedicated servants of our NHS better.”
Community pharmacies crucial: Akomolafe
Reacting to the government's announcement, Christchurch Health Centre director Baba Akomolafe said, "We all appreciate that government must make tough financial decisions, especially in the face of competing budget pressures. However, it would be revealing to ask taxpayers directly to rank priorities for business rate relief.
"For example, pubs, GP surgeries, dental practices or Community Pharmacies, if their continued existence depended on it. Many would likely recognise that Community Pharmacies provide essential health services every day to millions of patients and relieve pressure on the wider NHS."
The chancellor on Tuesday (27) announced that pubs will get a 15 percent cut to new business rates bills from April, followed by a two-year real-terms freeze.
Reeves said, "If we’re going to restore the pride in our communities, we need our pubs and our high streets to thrive.
"We’re backing British pubs with additional support, and our new High Streets Strategy will help tackle the long-term challenges that our much-loved retail, leisure and hospitality businesses have faced."
