Weak UK economy may drive further pharmacy cuts
Pharmacy accountant Umesh Modi warns that the expected slowdown in the growth of the UK economy could force the government to slash pharmacy funding further
The government may slash pharmacy funding further to help balance the books, a pharmacy accountant has warned.
In last week's Budget, chancellor George Osborne announced plans to cut a further £3.5 billion from public spending by 2020.
The announcement came after the Office of Budget Responsibility (OBR) revealed the UK economy will grow more slowly than expected over the next five years.
Accountant Umesh Modi, a partner at Silver Levene, told C+D that the weak economy means the government will likely raise less money than it hopes through taxation.
"The only way [Mr Osborne] is going to achieve [his objectives] is by cuts in spending," he said.
That could mean cuts to pharmacy funding, he said. "If this were to happen, contractors could have a bleak future."
The government already plans to take 6% from the pharmacy global sum in October.