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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.

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.

The Royal College of General Practitioners (RCGP) has raised 'serious concerns' about the impact of the increase in National Insurance on GP practices, and is calling for adequate funding to cover these additional costs. In the 2024 Budget of the new Labour government, the rate of employer National Insurance Contributions (NICs) was raised by 1.2 percentage points to 15%, effective from 6 April 2025. The per-employee threshold at which employers start paying NICs was also reduced from £9,100 per year to £5,000 per year. RCGP Chair Professor Kamila Hawthorne has warned that this extra financial burden could lead to the closure of some GP practices. "We have very serious concerns about the impact of the increase in National Insurance employer contributions on GP practices right across the country, many of whom are already struggling to keep their doors open and make ends meet due to historic chronic underfunding.

The National Pharmacy Association (NPA) has disclosed alarming figures on pharmacy closure in England, attributing them to the impact of funding cuts. According to NPA analysis of NHS Business Services Authority (NHSBSA) data, 222 pharmacies permanently closed their doors in 2024, marking the second-highest annual closure rate on record. This equates to an average of four pharmacies closing each week. Nearly 90 per cent of council areas have seen at least one pharmacy shut permanently in just the last two years. NPA chair Nick Kaye voiced concern that pharmacies have been "pushed to breaking point" by 40 per cent real terms cuts to their budgets and the ones still open are left "hanging on by their fingertips" and could be forced to close without "an urgent increase in their funding." "It is patients that have lost out the most, with more people in isolated areas having to travel further for vital medication as well as access to medical advice convenient to them," he said.