Pharmacies across the UK are sounding alarms as they face a “triple whammy” of increased business costs this April, as reported by the National Pharmacy Association (NPA).
The looming heightened National Insurance, National Living Wage, and business rates could add an additional £250million to their operating expenses.
However, unlike other businesses also facing these increases, pharmacies can’t simply raise prices on most goods to cover these costs.
Government officials have been cautioned that if these “financial cliff edge” pressures persist, community pharmacies may be compelled to cut down their opening hours or, in worse cases, shut down entirely.
In an unprecedented move, nearly all pharmacies participating in an NPA ballot, 99.7%, have signaled their willingness to initiate collective action if there is no improvement in funding.
Nick Kaye, the chairman of the NPA, highlighted the desperation of the situation, saying: “Pharmacies have shut in record numbers and those that are left are currently hanging on by their fingernails. They are growing increasingly concerned about their future.”
This comes at a time when crucial funding discussions between Community Pharmacy England and the Labour party are ongoing.
A call has been issued by the NPA for definitive answers on whether the unexpected £250million burden will be shouldered by the government.
The NPA warned that if a funding settlement to cover rising costs isn’t announced, it will recommend its 6,000 independent community pharmacies to cut back on opening hours as an initial collective response.
The NPA highlighted the financial strain on pharmacies, stating: “Many pharmacies are reporting bills of tens of thousands of pounds which are unfunded, on top of managing the impact of real terms cuts of 40 per cent over the past decade which has forced record numbers to close already.
“On top of this, many pharmacies will also face an estimated 140 per cent increases in their business rates, further pushing up costs.”
Meanwhile, a Department of Health and Social Care spokesman reassured the Daily Mail, saying: “Community pharmacy has a vital role to play as we shift focus out of hospitals and into the community as part of our Plan for Change.
“We are currently in consultation with Community Pharmacy England over funding for this year and next and will provide an update in due course.”
