Following a tough and complex negotiating process, the government has offered community pharmacy a 10.3% increase in funding.
The offer also includes measures to help stabilise medicines supply, to increase the Single Activity Fee and to introduce independent prescribing into NHS services, as well as a commitment to work with CPE on a shared programme of reforms to secure the strategy for the future.
Throughout these negotiations we consistently evidenced the desperate situation facing our sector, the pain that businesses and pharmacies continue to endure, and the impact on the workforce, patients and communities.
Read more: Funding deal for 2026/27 announced
Whilst the government has acknowledged this, and has offered one of the largest percentage increases in the NHS, we know that this is far from problem solved.
Despite these concerns, the CPE Committee voted to accept the government’s offer. This decision was difficult and emotional, but one I believe is right for our sector.
I wanted to use this opportunity to explain why, and to be clear that accepting this deal does not mean that we think the current situation is sustainable.
Read more: What the CPE committee said after the deal: ‘Trust does run out...’
We will, and must, continue to make the case both privately and publicly for increased funding and a sustainable operating model.
However, the truth is that this deal was the best that could be achieved in the circumstances, and accepting it was the best course of action for the sector for the future.
Continued pressures on public and NHS finances meant that there was no guarantee of extra money.
Many parts of the NHS are in a poor financial position and have the evidence to prove it.
It was only through close, constructive working relationships, such as with the minister, Stephen Kinnock, and his team, combined with strong evidence, including a powerful investment case, and wider influencing work, that we were once again able to achieve this level of funding uplift for community pharmacy.
Read more: How industry bodies reacted to the contract news
At the end of the negotiations we faced a simple choice. Support the government’s offer, or vote no and potentially have the deal imposed on inferior terms, most notably in terms of the commitment to work together on reforms and future strategy.
Voting no would have allowed us to shout even more loudly about the troubles facing the sector in the moment.
But to say no would also risk undermining the constructive working relationships we have developed with this government, future access and influence, and inevitably future funding settlements, negatively.
Double-digit funding increases across the last two negotiations are testament to the importance of dialogue and persuasion.
Tempting as it would be to chase punchy headlines, refusing this deal would have put more pharmacies at greater risk. The committee was not prepared to take that risk.
Read more: Dispensing at a loss - is it justified to refuse on financial grounds?
Instead, we have taken a longer-term view. That through continued negotiation and by championing the sector, and with a commitment to progress work on reforms, we will be able to deliver the best possible outcomes.
Negotiations will begin again later this financial year and the reform conversations will be complex, difficult and will require harsh truths. They will take time.
But to shy away from this, and that is what saying no to this deal would do, is to put at risk many more pharmacies, their patients and their local communities.
I do not believe that would have been a responsible course of action.
Not all of you will agree with this approach, and it’s not possible for me to answer all the questions in this short article.
That’s why I will be meeting with sector bodies over the coming weeks and months, and with many of you at our upcoming Regional Roadshows, to explain where we are, what’s next, and to talk about how we can together achieve the changes that pharmacies so desperately need.
We can achieve more when we work together, and I look forward to speaking to and campaigning alongside many of you.
Janet Morrison is chief executive of Community Pharmacy England
