In a letter to pharmacy minister Stephen Kinnock, CPE chief executive Janet Morrison outlines the sector's escalating crisis and called on Government to deliver rapid progress towards sustainability in the upcoming Community Pharmacy Contractual Framework (CPCF) negotiations. This must not only stabilise the sector for 2026/27, but must begin a credible, long-term recovery plan.

The letter says: ‘Businesses are losing money and accumulating debt, and operationally, pharmacies are struggling to cope with the ongoing demand from patients and the public. Pharmacy closures are continuing – including in our most deprived areas – and we have also seen a reduction in the number of collective pharmacy opening hours.

‘Statutory accounts filed at Companies House continue to show the perilous financial position that many pharmacy companies are in, typically with high levels of loss-making, borrowings and net current liabilities.'

Without Government intervention to help, the direct drop in the accessibility of services is only likely to continue, Morrison continues, adding that this could have untold consequences for patients and the public's access to services, and for wider NHS services. ‘It would also stall progress on your many positive ambitions for the development of the sector's role and services in a reformed NHS, which we share,' the letter warns.

Describing the mounting pressures now impacting community pharmacies, the letter stresses the level of deterioration:

• Pharmacies are worse off than a year ago, despite the 2025 funding uplift, which has been swallowed by inflation, tax changes and operational pressures.
• The network faces a structural £2bn+ funding deficit, leaving many businesses losing money every month.
• Pharmacy opening hours have fallen dramatically, with 75,000 fewer hours per week since mid-2023 and an 88% collapse in late evening provision.
• Drug Tariff cuts and Category H changes announced last month are another blow, further destabilising medicines supply.
• Upcoming changes introduced by the 2025 Autumn Budget are expected to add millions in extra costs, including through a National Living Wage rise and higher business rates.

Community Pharmacy England expects the 2026/27 CPCF negotiations to commence shortly.

In response, Henry Gregg, chief executive of the National Pharmacy Association, said: ‘Ministers must get round the table and put pharmacies in a financial position to help deliver the transformation of local NHS services they – and we - want to see.

‘We're clear that anything less than a 8.9% increase will be a real terms cut, jeopardising patient care and risking further closures.

‘We want to see concrete progress towards closing the funding gap and real strides towards new services and independent prescribing – both outside funding for medicines.

‘We need to be very clear with the Department of Health that while they have made some progress, they have not fixed pharmacy funding and rapid reform of the system is required to deliver the better service we and our patients want.'