The troubled community pharmacy sector with years of under-funding and margin squeeze is now facing a new existential threat.
According to Raj Matharu, chair, Community Pharmacy London, there is an emerging cohort of ‘sub-prime community pharmacies’ and called for urgent reforms to save the sector.
In a LinkedIn post, he said, "A growing number of businesses are trapped in negative equity, burdened by long-term leases with unrealistic rent expectations, and operating within an NHS framework that offers no transitional funding or support to the shift toward clinical services."
He observed that "pharmacies that could be sold have been sold, and those that could close have already closed".
"Banks are understandably reluctant to lend to younger pharmacists for these acquisitions - and even if they did, the financial risk would be unsustainable."
Surveys by the National Pharmacy Association (NPA) and Community Pharmacy England (CPE) in August found that up to 63 per of pharmacies could close in the next year, with around 4 in 10 being unable to pay in full for the cost of prescription medication for patients.
According to NHS Business Service Authority, Community pharmacies in England dispensed a record 1.16 billion prescription items in the year to April - a four per cent increase on the previous year.
But the number of pharmacies has fallen to 11,098 in 2024-25, the lowest level in 10 years. This really shows the strain the existing pharmacies are facing.
A recent All Party Pharmacy Group (APPG) report has called for action to close the £2bn annual funding gap faced by community pharmacies.
The report had noted that 1.6 million people visit pharmacies in England daily, but most pharmacies are operating at a loss, facing workforce shortages and medicines supply instability.
"If we truly value accessible healthcare and the role of pharmacy in delivering it, we need urgent reform. A sustainable funding model is not just desirable - it is essential.
"Without it, we risk losing vital community assets and undermining the very foundation of patient care."
Matharu observed that community pharmacy is not just a healthcare provider - it is a cornerstone of the NHS vision and a driver of local economic resilience.
"Our sector is essential to delivering the NHS Long Term Plan, improving productivity, and sustaining employment in communities across the country.
"Every prescription dispensed, every clinical intervention made, and every patient supported represents both better health outcomes and economic value. Yet, without a fair and sustainable funding model, we risk undermining this vital network.
"If we truly want to achieve the ambitions of the NHS and strengthen local economies, we must invest in community pharmacy—not as a cost, but as a strategic asset," Matharu added.
