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The National Pharmacy Association (NPA) has warned of potential pharmacy closures in the coming months if long-standing funding cuts are not addressed and pharmacies are not supported with the National Insurance rise. With Downing Street suggesting that GP surgeries may receive extra support to offset the increase in employer National Insurance contributions (NICs) later this year, NPA chief executive Paul Rees has called on the government to extend similar support to pharmacies. A No 10 spokeswoman clarified that contracted workers, including GPs, were not eligible for an exemption from the NICs hike, which she said was consistent with the approach of previous governments. "There is a general process whereby departments, the Department of Health, for example, confirm their funding for general practices," the spokeswoman said, noting this process would occur later in the year. In response, Paul said that it would be "an insult" if GPs were provided support for the National Insurance rise but not hard-working pharmacies, who have faced nearly a decade of cuts in funding and are shutting at record rates.

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.

The National Pharmacy Association (NPA), the Company Chemists' Association (CCA), Community Pharmacy England (CPE), and the Independent Pharmacies Association (IPA) have united in urging the government to shield community pharmacies from the impact of the Budget increases. In a joint letter to the health secretary Wes Streeting MP, they have highlighted that rises in employers' National Insurance contributions and the National Living Wage could cost community pharmacies £200 million a year in unplanned costs. They have warned the government that 'without mitigation, these additional costs will push many pharmacies more towards insolvency', leading to more closures and cuts to vital health services for patients. From April 2025, the national living wage will increase by 6.7 per cent to £12.21 per hour, and the national minimum wage for 18-20-year-olds will increase by 16.3 per cent to £10 per hour.

Community Pharmacy Scotland (CPS), along with 47 public and voluntary sector organisations, has endorsed a letter to UK Chancellor Rachel Reeves, seeking funding support for employer national insurance contributions ahead of the planned increases from the 1st of April 2025. The letter, co-signed by first minister John Swinney and COSLA president Shona Morrison, raises concerns over the impact of the impending increase, which is estimated to cost public service providers in Scotland over £700 million. The Scottish Government calculated that the policy's cost for the directly employed public sector could be around £550 million, with councils accounting for about £265 million of that total. If contractors and commissioned services are included, the total costs could exceed £700 million. The letter also underscores the significant impact on charitable organisations, stating that "there is a real risk that these costs will see employers unable to award meaningful pay rises, retain staff or even continue to operate." The Scottish Council for Voluntary Organisations has estimated that the Third Sector, comprising charities, social enterprises and grassroot community groups, will face additional costs of £75 million per year, plus wider inflation.

Sector leaders have welcomed the NPA ballot results, which demonstrate that community pharmacies are prepared to take collective action if a funding increase is not achieved. Nearly all pharmacy owners, who participated in the NPA ballot, said they were willing to limit their services to protest funding cuts. Commenting on the poll results, Malcolm Harrison, CEO of the Company Chemists' Association (CCA) said: "The results of the NPA ballot serves to underline the huge pressure that pharmacy contractors face, following a decade of underfunding. He emphasised the need to start the Community Pharmacy Contractual Framework (CPCF) renegotiations for 2024/25 without delay. "The government and NHS must uplift all elements of the contractual framework, to stop further reductions in pharmacy opening hours and permanent pharmacy closures, and to ensure that patients can continue to receive the medicines and clinical care and advice they need," he added. Harry McQuillan, Chairman of Numark, stated that while the NPA ballot outcome has once again brought the financial crisis facing the sector into focus, this is "an everyday reality" for many independent pharmacies and that it has reached "breaking point." He warned that rising operational costs including the increase in national insurance and minimum wage will push many more to the brink.