Liberal Democrat MP for North Shropshire Helen Morgan yesterday (March 5) warned that community pharmacies will be “clobbered” by the upcoming tax hikes introduced by Chancellor Rachel Reeves’ autumn budget – which is set to come into force next month.
It comes as a bill that would see pharmacies exempt from the national insurance hike will be considered in the House of Commons on March 19.
Speaking at a House of Commons debate, Morgan said that “in a few weeks’ time, in April, [pharmacies] will be clobbered by not only the NICs hike, but the increase in business rates, which will affect high street retailers”.
“Shamefully, they have not even had their funding rates for the current financial year confirmed – the one that ends in three weeks’ time,” she added.
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Morgan – who is the Liberal Democrats’ health spokesperson - said that she is “particularly concerned” by the “alarming rate” of pharmacy closures, adding that “community pharmacies are essentially subsidising the NHS by making a loss on many prescription drugs that they dispense”.
She called on the government to set out “what steps are being taken to keep our community pharmacies in business”.
“If we want to see care in the community, it is essential that we support them,” she added.
“Extra pressure”
Meanwhile, Conservative MP for Sleaford and North Hykeham and shadow health minister Dr Caroline Johnson said that “it is clear that the Chancellor had not properly considered the effects of the NICs rise on the wider healthcare system”.
“The government [has] exempted the NHS from that tax rise, but that exemption does not cover general practice, hospices, charities, many social care providers...[or] local pharmacies,” she added.
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“The government talks a good talk about bringing healthcare closer to the community, but actions speak louder than words,” Johnson said.
“Putting extra pressure on community-delivered services is not a good way of delivering [the government’s] aims,” she told MPs.
“Cloud cuckoo land”
But health minister Ashley Dalton responded that “anyone who thinks the Chancellor was wrong to make the necessary decisions and trade-offs must explain what they would cut from that list”.
“Anyone who thinks they could have achieved everything we have done in less than a year without the autumn budget is living in cloud cuckoo land,” she told MPs.
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“We have committed to look at how we can further expand the role of pharmacies...and we have now resumed our consultation with Community Pharmacy England (CPE) regarding the funding arrangements for 2024/25 and 2025/26,” she stressed.
She added that she is “unable to say any more” until the consultation is finished.
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It comes after the House of Lords last week voted for pharmacies to be exempt from the NICs hike.
Lords voted with a 130 majority - with 305 for and 175 against – for the Lib Dem amendment of the National Insurance Contributions (Secondary Class 1 Contributions) Bill.
The bill passed its third reading in the House of Lords this week and has now been sent back to the House of Commons, where it will be considered on March 19.
Additional reporting by Ben Lee
