Hampshire and Isle of Wight LPC has announced it will be giving contractors a "levy holiday" in May and making a 10 per cent reduction to contributions from June 1.

The LPC said the reduction, which will see the levy drop to 9p per £100, was being implemented to "support contractors in these hard financial times".

Deborah Evans, interim chief officer of the LPC, told C+D that funds had accumulated throughout the year and "good financial management" made the levy reduction possible.

"Being the largest LPC in the country helps a lot with cashflow, allowing us to be cost-effective in our delivery of quality support for out contractors," she explained.

PSNC said it encouraged LPCs to "manage their finances effectively and prudently", but chief executive Sue Sharpe warned they should not accumulate funds from excessive levies.

Some LPCs had accumulated reserves then used them to reduce levies, she said. And she warned: "LPC funds must be used to serve the interests of their contractors."

Ms Evans also confirmed the LPC would continue to invest in service development and the Healthy Living Pharmacy initiative.