After an “extraordinary year of spend and loss” the negotiator’s budget was left in the red by £597,483, Sue Sharpe told contractors at the local pharmaceutical committee (LPC) conference in Manchester last week (November 1).

The organisation has “had to dig deep this year”, resulting in “severely depleted reserves”, she said.

“Our reserves are there to provide a battle fund in times of need, and this last year was a time of great need.”

£1m court case

One contributor to the deficit was PSNC’s legal challenge to the funding cuts in England, which was heard in the High Court in London over three days in March.

Ms Sharpe said the judicial review has cost PSNC £959,398 to date.

The remaining balance for the appeal to the judge's decision – which is expected to be heard next year – is £152,151, she said.

Though that budget may look “very thin”, its costs will be “nothing like” those of the judicial review, Ms Sharpe said.

“We are very grateful to you,” she said to the audience of LPC members. “[The court case] was a step that was regrettable but necessary. We will not come back to you asking for the same again.”

Other key expenditures for 2016-17 included the PricewaterhouseCoopers report on the value of community pharmacy, and a separate report on the “future of the PSNC’s composition”, Ms Sharpe added.

In addition, PSNC moved offices – from King’s Cross to Hosier Lane in east London – to avoid a rent hike, she said. 

PSNC was in deficit by over half million pounds for 2016/17 after PWC report, #cutsincourt case and office move. #LPCconf pic.twitter.com/KhXjTAVWz8

— Thomas Cox (@CandDThomas) November 1, 2017

PSNC chair: “Make every penny count”

PSNC chair Michael Pitt told delegates that “we're trying to make every penny count” as “savings do have to be made”.

The negotiator will be “making some reductions” in expenditure in 2018 – despite pressure to “do more and more” – which would be decided at a committee meeting “very shortly”, he said.

“The PSNC itself is also having to cope with its own financial pressures…in due course you'll get to hear about what our budget's going to be,” he said. 

Chair @PSNCNews Michael Pitt opens conf by recognising pharmacy having "pretty tough time" as "cuts beginning to bite" pic.twitter.com/9gKfyWomJC

— Thomas Cox (@CandDThomas) November 1, 2017