Pharmacies could reduce opening hours or close as a result of budget measures, leaders warn

Industry leaders have warned that pharmacies may be forced to shorten their opening hours or close altogether if they are not protected from tax increases and national living wage increases announced in the budget.

It comes as analysis by a representative body claimed the increases could lead to an estimated £200 million a year in unplanned costs.

A number of organizations representing pharmacists have joined forces to call on Health Minister Wes Streeting to intervene.

In October, Chancellor Rachel Reeves increased employers’ national insurance contributions by 1.2 percentage points to 15% and lowered the threshold at which tax begins to be paid from £9,100 to £5,000, raising it to £26bn a year.

It also announced that the national living wage for workers aged 21 and over will rise by 6.7% from £11.44 to £12.21 per hour from April.

The measures have sparked concern among some in the healthcare sector, including pharmacists, GPs, care homes and nursing homes.

Now, analysis carried out by Community Pharmacy England (CPE) claims the NI increase could cost an estimated £50 million, while the increase in the national living wage could cost between £115 million and £152 million.

The organisation, along with the National Pharmacy Association (NPA), the Corporate Chemists Association (CCA) and the Independent Pharmacies Association (IPA), have written to the Minister for Health over their fears that measures could worsen if measures are not eased. Many pharmacies are on the verge of bankruptcy.

Dr Leyla Hannbeck, chief executive of the IPA, warned that the sector was “hurling towards disaster” and that this could “completely undermine any attempt to fix the NHS and shift care to communities”.

“The harsh reality is that local pharmacies have to pay their bills,” he added.

“Without the mitigating action we call for, these extra costs will be disastrous for pharmacies. “We need urgent action before these measures undermine community pharmacies’ ability to help with the NHS 10-year plan.”

NPA chief executive Nick Kaye described the Budget as a “hammer blow” to pharmacies across the country.

“Unlike most businesses, pharmacies cannot pass these costs on to their patients and have limited ability to cover them themselves,” he added.

“Pharmacies are ambitious to expand their role and want to work with the Government to deliver the best possible services to their communities and take pressure off other parts of their health systems.

“However, they cannot do so until these pressing funding challenges are resolved.”

Janet Morrison, chief executive of CPE, warned that the measures would “harm the already fragile community pharmacy network”, while Malcolm Harrison, chief executive of CCA, described the proposals as “short-sighted”.

The letter to Mr Streeting from pharmacy leaders comes after GPs warned some surgeries could lay off staff or close as a result of the change.

Organizations representing care homes and nursing homes also voiced concerns about the sectors’ ability to close the funding gap immediately following Ms Reeves’ announcement.

Earlier this month, NPA members repeatedly voted in favor of collective action on the funding issue.

The trade association said this could mean fewer pharmacies will be open in the evenings or at weekends, with the potential for some to withdraw from locally provided services such as emergency contraception, addiction support and smoking cessation services.

A spokesman for the Department of Health and Social Care said: “The municipal pharmacy has been neglected for years, but will play a vital role in transferring care from hospital to the community as we reform the health service through our 10-year health plan.

“We have announced £26bn of support for the NHS and social care. “We are committed to working with the pharmaceutical industry and will announce further details on the allocation of funding for next year in due course.”