Business rates rise will push pharmacies to 'brink of collapse'

The rise in business rates will push many pharmacies to the 'brink of collapse’ if it goes ahead in April, the National Pharmacy Association (NPA) warned chancellor Rachel Reeves.

© Hosny Salah/Pixabay

© Hosny Salah/Pixabay

In a letter to the chancellor, the NPA has warned that ‘many pharmacy businesses will be unable to survive' the increase without further support from the government.

The letter said a rise ‘would significantly limit access to health services, put more pressure on other public services, reduce our sector's contribution to the UK economy, and put many jobs at risk'.

The NPA, which represents around 6,000 independent pharmacies in the UK, has urged the government to extend any support being offered to pubs to community pharmacies, which have been closing in record numbers in recent years.

Pharmacies have said it would be ‘indefensible' if pubs were singled out for support over community pharmacies, a number of whom face a doubling of their bills in April running into the tens of thousands of pounds.

Pharmacies have shut in record numbers due to over a decade of government underfunding. Around 2 pharmacies shut permanently a week in England last year, despite a recent funding uplift, over 1,400 have shut since 2017.

Those that have stayed open are going to extraordinary lengths to do so. A survey by the NPA found that 72% of pharmacy owners had remortgaged their homes or raided personal savings to keep their pharmacies afloat last year.

Henry Gregg, chief executive of the National Pharmacy Association, said: ‘Unlike an ordinary business on the high street, pharmacies are primarily funded by the NHS and cannot increase their prices for the nations prescriptions to meet this soaring cost.

‘Despite a welcome uplift last year, we are concerned that many pharmacies are hanging on by their fingertips and this could push them to the brink of collapse, leading to more closures impacting the patients we serve.

‘Pharmacies should be treated as an equal partner in the NHS and given the same support with their business rates as GPs and NHS dentists.'

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