The clawback will see an average drop of around 17-18 pence per item on current drug tariff prices, for the 12-month period beginning in August, the Pharmaceutical Services Negotiating Committee (PSNC) announced on Wednesday (July 19).

Mr Modi, partner at accountancy firm Silver Levene, estimated that over this 12-month period the clawback would add a £15,000 loss onto the £27,000 shortfall the average pharmacy would already expect as a result of the funding cuts, he told C+D yesterday (July 20).

“This is unaffordable for many, particularly average-to-small pharmacies,” he said.

“No business can operate in this manner”

“In my view, this is completely unjustified. No business can operate in this manner, in a period of constant uncertainty and without the security of income,” Mr Modi said.

“I am convinced so many independents will think of cutting staff, reduce investment or simply sell out. There will be many more that will close down, as they won’t be able to survive the cuts.

“This is not going to be good for the patients either,” said Mr Modi. “These cuts need to be reversed and it is [a] case of austerity gone way too far to achieve short-term goals.”