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Health secretary Wes Streeting has pledged to stabilise the community pharmacy system before enabling it to take on a broader role in healthcare, as he addressed the Health and Social Care Select Committee in Parliament on Wednesday (18 December). "Now that we have got the budget set, we will be consulting with Community Pharmacy England shortly in the New Year," Streeting stated. "I do want to reassure pharmacists across the country that we are taking into account the enormous pressures they are under when thinking about allocations so that we can stabilise the system and create the foundations from which to recover." The health secretary emphasised that his top priority is to "stabilise the [community pharmacy] system" before expanding initiatives such as Pharmacy First and independent prescribing. He also expressed a vision for community pharmacies to play "a bigger role… as part of the shift from hospital to community," but stressed that immediate steps are required to address the sector's current financial strain. The announcement that Community Pharmacy Contractual Framework (CPCF) negotiations will commence early in the New Year was reaffirmed by Streeting, echoing a statement made earlier in the week by minister for care Stephen Kinnock during a Westminster Hall debate.

Over-the-counter (OTC) medicines can empower customers and pave the way for a sustainable healthcare future. By embracing OTC products, pharmacies can achieve greater freedom, stability, and enhanced profitability. In our exclusive interview with Anna Maxwell, founder and CEO of pioneering consumer healthcare company Maxwellia, we explore their game-changing pharmacy brands leading the way in self-care. Why pharmacies should embrace OTC medicines? There's never been a more critical time for pharmacies to lean into the OTC space. Right now, about 90 per cent of pharmacy income in the UK is tied to NHS funding-a model that's increasingly unsustainable.[1] We all value the NHS, but it simply can't afford to cover every treatment at the point of use indefinitely. If pharmacies could achieve even a modest shift in NHS reliance this would mean more freedom, stability, and profitability for the business. OTC medicines are the key to making that happen, offering a way to quickly provide, effective treatments that help customers while reducing the administrative and financial burdens on pharmacists.

Community pharmacies, like any business, face financial challenges, and one significant concern is managing cash flow. Your business requires cash flow to pay for stock, suppliers, operational costs, taxes and service bank debts and these need to be matched with cash inflows from NHS remuneration, Over The Counter (OTC) sales and HMRC VAT refunds otherwise you could find yourself in a vicious circle. If cash flow is not monitored, you will find the business juggling to settle its liabilities as they fall due. If suppliers are not paid on time, they will not send vital supplies which in turn results in customers going elsewhere. If staff/locums are not paid on time, your patients will suffer due to lack of staff or even poor service levels from demotivated staff. HMRC can issue debt recovery proceedings against the business if debts remain unpaid. Lenders will be keeping a keen eye on the management accounts to ensure the business remains strong and is able to settle its financial obligations as they fall due. Let's explore how UK community pharmacies can identify potential cash flow problems and implement strategies to navigate these challenges effectively. Dispensed items If you are experiencing a drop in the average number of items you are dispensing over time, then it could mean customers could be going elsewhere. Loss of customers will mean less income for the business, and it is always difficult to get them back especially when they have gone to a local competitor. You need to keep an eye on this indicator and investigate any drop in numbers. Implement alternative strategies as to how you may increase this for example through partnerships with local community centres, GP surgeries, colleges, etc.