The offer guarantees a minimum for reimbursement set to £120m, up from £110m from 2024/25.

In addition, there is an increase in the value mapped from the Scottish Drug Tariff by £20m, resulting in the current £80m increasing to £100m. This will be delivered as guaranteed service income.   

This is only the first element of the deal, discussions about strategic service developments are ongoing.

CPS' chief executive, Matt Barclay, said: ‘We agreed with Scottish Government to work on what we could with the financial package when we could. This is effectively the first part of the deal, supporting network cashflow in the event of a medicines market downturn linked to the Drug Tariff through the Guaranteed Minimum and crucially mapping further guaranteed money to support strategic service lines for patients. We are continuing to work hard to get more resource into the contract in line with the CPS Board objectives for 25/26.' 

In response, chair of the National Pharmacy Association Olivier Picard, said: ‘This is good news for pharmacies across Scotland and will help maintain a strong network amid rising costs. National insurance and national minimum wage increases have added to the pressures facing pharmacies alongside growing medicine costs and inflation that has affected every business in Scotland.

‘It is reassuring that CPS will be closely monitoring pharmacies' cashflow to ensure our sector remains sustainable. The pharmacy network is vital for millions of people who rely on our members not only for medicines but also health advice and treatment on their doorsteps. So it's important to see commitment from the Scottish Government to maintaining this crucial service and seeing it flourish in the years ahead.'