The rise in business rates will push many ‘pharmacies to the brink of collapse’ if it goes ahead in April, the National Pharmacy Association (NPA) warned the Chancellor today.
In a letter to the Chancellor, the NPA has warned that ‘many pharmacy businesses will be unable to survive’ the increase without further support from the government.
The letter said a rise ‘would significantly limit access to health services, put more pressure on other public services, reduce our sector’s contribution to the UK economy, and put many jobs at risk’.
The NPA, who represent around 6000 independent pharmacies in the UK, have urged the government to extend any support being offered to pubs to community pharmacies who have been closing in record numbers in recent years.
Pharmacies have said it would be ‘indefensible’ if pubs were singled out for support over community pharmacies, a number of whom face a doubling of their bills in April running into the tens of thousands of pounds.
Unlike pubs or other high street businesses, pharmacies receive around 90 per cent of their income from the NHS to cover the cost of dispensing vital medication to patients as well as delivering vaccination campaigns. They are therefore unable to increase prices to absorb soaring business rates or rises in National Insurance contributions.
The NPA have called on the government to fully reimburse pharmacies for the cost of business rates, in the same way that GPs and even NHS dentists are.
Pharmacies have shut in record numbers due to over a decade of government underfunding. Around 2 pharmacies shut permanently a week in England last year despite a recent funding uplift, over 1400 have shut since 2017 .
Those that have stayed open going to extraordinary lengths to do so. A survey by the NPA found that 72 per cent of pharmacy owners had re-mortgaged their homes or raided personal savings to keep their pharmacies afloat last year.
Henry Gregg, Chief Executive of the National Pharmacy Association said:
“Pubs may well deserve support but pharmacies offer more than just beer.
“It would be indefensible if support was provided to pubs but not to pharmacies, who are fundamental to everyone’s health and deserve fair treatment.
“Unlike an ordinary business on the high street, pharmacies are primarily funded by the NHS and cannot increase their prices for the nations prescriptions to meet this soaring cost.
“Despite a welcome uplift last year, we are concerned that many pharmacies are hanging on by their finger tips and this could push them to the brink of collapse, leading to more closures impacting the patients we serve.
“Pharmacies should be treated as an equal partner in the NHS and given the same support with their business rates as GPs and NHS dentists.
“Pharmacies can play a vital role in delivering the government’s ambitions in the 10 Year Plan to bring care closer to home.”
