In Business news

Follow this topic

Bookmark

Record learning outcomes

The National Pharmacy Association chair Olivier Picard has accused the Government of going back on its promise last year to invest in community pharmacy by “quietly” slipping in a clawback of millions of pounds from pharmacy budgets just before Christmas.

The NHS Business Services Authority (NHSBSA) announced on December 23 that the latest quarterly medicines margin survey results revealed an over delivery in margin of £158 million at the end of June 2025.

The NHSBSA said that would result in a £16.8 million reduction in medicine margin per quarter from this month applied across Categories M and A. The NPA described the measure as a “bombshell”.

Picard (pictured) warned the “appalling” clawback will “hit pharmacies indiscriminately” and insisted it “directly contradicts” a promise by Labour in April last year to increase pharmacy funding after it announced a £3.073 billion deal for 2025-26, including a £193 million write-off of historic margin overspend and a review of margin distribution. 

“This exposes a complete disconnect between Government rhetoric and the real-world facing pharmacies and simply highlights the fact that the current drug tariff and pharmacy contract remain seriously underfunded and fundamentally broken,” Picard said.

“Pharmacies are left unable to predict, even week to week, what their funding will be. That level of uncertainty is damaging and can only hold back the reform the Government rightly wants to see.”

Urging Labour to “urgently commit to genuine contract reform that funds medicines supply sustainably”, Picard said: “Pharmacies cannot plan, cannot invest and are forced to dispense NHS medicines, day after day, often at a loss, with little idea of whether they will be reimbursed adequately. No other part of the NHS would be expected to operate like this.

“That’s no way to run a business and it is absolutely no way to run an essential public health service.”

Independent Community Pharmacist has contacted the Department of Health and Social Care for a response.