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The National Pharmacy Association (NPA) has welcomed the Chancellor's commitment to increase the NHS budget, hoping that 'community pharmacies benefit from this investment'. The association is urging the government to address years of underfunding so that community pharmacies can avoid staff lay-offs to cover the increasing costs of the national living wage. The government's uplift of the National Living Wage was confirmed in its latest budget announcement to tackle the cost of living crisis. The NHS budget will also be increased in each of the next two years by £3.3bn. A recent NPA commissioned report by Professor David Taylor from University College London predicted that wage inflation and other cost pressures could combine with funding cuts to lead to cut-backs and pharmacy closures.

National pharmacy bodies have welcomed two VAT changes related to community pharmacy services announced in the Spring budget on Wednesday (15 March) but were disappointed that the budget brought no further relief for the sector in a crippling funding crisis. It was announced that from 1 May 2023, VAT exemption on healthcare would be extended to include medical services carried out by staff directly supervised by registered pharmacists. The government will also extend zero rate on prescriptions to medicines supplied through Patient Group Directions. This measure will be introduced in autumn 2023. HM Treasury said these measures were being introduced to ensure that the VAT system keeps up with changes to how the NHS operates and how healthcare is delivered across the country. More widely, Chancellor Jeremy Hunt promised to halve inflation and said that the NHS would soon publish its long-term workforce plan.

"Not improving our funding is not an option, if they want to continue to deliver anything like the level of patient care we have done in recent years," he emphasised as he prepares for the NPA'S Save Our Pharmacies Day of Action (June 20). Over the past two years, McElrea has navigated crises stemming from NHS Scotland policies, particularly concerning medicines price inflation and delayed payments. "The cost of medicines increased rapidly compared to inflation," McElrea stated, noting NHS Scotland's slow response in adjusting tariff prices. "This wiped out £50,000 of cash reserves and forced us into £30,000 of additional borrowings." Delayed payments further strained operations, with McElrea highlighting the impact of payments based on outdated pricing.

The Pharmaceutical Services Negotiating Committee (PSNC) has refused to accept the Department of Health and Social Care (DHSC)'s decision to get rid of 'transitional payments' from February 2023. The pharmacy negotiator said that 'any reductions in payments at this point will be impossible for community pharmacy contractors to manage financially.' "We are also continuing to be clear with officials and ministers that CPCF funding needs an urgent uplift to help businesses to cope with soaring costs being driven by inflation and the workforce crisis. We put a comprehensive business case to the government for this uplift in the last CPCF negotiations." The latest 'transitional payments decision' by the Department follows the announcement last year that the value of the these payments would be phased down over the second half of 2022/23 and will be based on the latest monitoring and analysis of funding delivery. PSNC says it submitted a fully-costed bid for a 'Pharmacy First' service in its last round of negotiations alongside the case for an uplift to core CPCF funding. Both of these were refused.

The Department of Health and Social Care (DHSC) is pushing ahead with its plans to implement a new drug tariff from April 2024. However, this move has sparked strong opposition from Community Pharmacy England (CPE), raising concerns about its potential impact on pharmacies and patients. Earlier, it was announced that the April drug tariff will include the new 'Retrospective top-up payment for Concessionary prices, which will be applied automatically for the products listed in Part VIIIE each quarter by the NHS Business Services Authority (NHSBSA), according to the volume the contractor was paid for. However, CPE argued that the government has imposed these "untested" changes without their agreement, and strongly opposed them stating that "no recovery or downward pressure on margin is acceptable given the financial fragility of community pharmacies." Janet Morrison, chief executive of CPE, has voiced strong opposition to these changes, arguing that "any system expecting pharmacies to dispense at a loss" jeopardises the sector's financial stability and compromises patient care.

Released on Monday morning, the election manifesto shared by the Liberal Democrats pledges to "strengthen patients' rights" by tackling public health inequalities and providing early access to community services. The Liberal Democrats Party's manifesto promises to address the issues at both the "front and back doors" of the National Health Service (NHS), which the party claims has been plunged into crisis by the Conservatives. Pledging to invest in public health and early access to community services, the party aims to "work towards a fairer and more sustainable long-term funding model for pharmacies and build on the Pharmacy First approach to give patients more accessible routine services and ease the pressure on GPs." The pledge also includes making prescriptions for people with chronic mental health conditions free on the NHS, as part of a wider commitment to review the entire schedule of exemptions for prescription charges.