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The new Labour government's first budget has not been well received by community pharmacies, who are 'deeply worried' about the increase in National Insurance and the national living wage. They have also voiced their dissatisfaction with the Autumn Budget 2024 for lacking measures to address pharmacy closures. Commenting on the Chancellor's Budget, Paul Rees, CEO of the National Pharmacy Association (NPA) said: "Millions of people who depend on local pharmacies will be holding their breath today, hoping that the £22.6bn increase in health spending announced by the Chancellor will include money to stem the devastating closure of local health services in the past decade. "There's absolutely no mention in the Budget of action to halt the closure of our vital NHS pharmacy network, which has been shrinking at the rate of seven a week as pharmacies are forced to close through underfunding." According to the NPA, around 700 pharmacies have shut since just the start of 2022 due to the impact of a 40 per cent cut to funding coupled with rising demand.

Chancellor of the Exchequer, Rachel Reeves, presented the Labour government 's Autumn Budget 2024 in the House of Commons on Wednesday, describing it as "a Budget to fix the foundations of the economy and deliver change by protecting working people, fixing the NHS and rebuilding Britain." The Budget, the first from a Labour government in 14 years, introduces some significant measures to boost small businesses and deliver crucial support to the NHS amid challenging economic conditions. In a move to support businesses, the government has announced a fairer business rates system by permanently lowering the business rates multipliers for retail, hospitality, and leisure (RHL) properties from 2026-27. Additionally, £1.9 billion has been allocated to support small businesses and the high street in 2025-26, including freezing the small business multiplier and providing a 40% relief on RHL property bills, up to a £110,000 cash cap. To repair the public finances and raise funding for public services, the government has decided to increase the employer National Insurance Contributions (NICs) rate by 1.2 percentage points to 15%, with effect from 6 April 2025.

The Department of Health and Social Care (DHSC) has proposed a 2.8% pay uplift for NHS Agenda for Change (AfC) staff, including hospital pharmacists, for the 2025/2026 pay round. This recommendation was detailed in the DHSC's submission to the NHS Pay Review Body (NHSPRB), which described the figure as "a reasonable amount to have set aside based on the macroeconomic data and forecasts and taking into account the fiscal and labour market context." NHS England also supported the 2.8% pay increase, stating that its proposal reflects "the likely NHS budget from discussions to date with DHSC and what was set out by HM Treasury in the Autumn Budget 2024." "We propose to set allocations for NHS planning on the basis of a 2.8% pay settlement. Every 0.5% increase above that costs around £700m; which is the equivalent to around 2% of elective activity (greater than 300k completed patient pathways)," it added. However, Unite the Union, representing NHS staff, condemned the DHSC's recommendation, called the proposed increase "an insult."