There was a sincerity about Stephen Kinnock’s message to community pharmacy as he joined CPE’s Janet Morrison in a press conference to reveal the outcome of funding negotiations yesterday.
“We are rebuilding from a very difficult position,” he began.
“I think everybody understands that. I’m very keen to be honest and upfront about that fact.
“We’ve had more than a decade of underfunding and neglect, and that’s left the sector facing very significant financial shortfalls and on the brink of collapse.
“But we are absolutely committed to turning it around. That, I think, is very much what this is demonstrating today.
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“We’re also very clear that this is not going to happen overnight. There is no magic wand. We’ve got to really move in concert with the sector, building step by step, and that is what we will do.
“Community pharmacies have an absolutely vital role to play as we shift the focus of care from hospitals into the community, and community pharmacies will be at the heart of our 10-year plan for the future of our NHS.
“Today’s announcement shows we are determined to work closely with the sector to get it back on its feet and supported, as it delivers new vital services for patients, and so that we can, together, get the sector fit for the future and at the heart of our 10-year plan for the future of the NHS.”
Resolution felt like an achievement in itself, whatever comes tomorrow.
“No-one wants to reduce services through protest action so we’ll look carefully at the detail and consult our members,” said NPA, reacting to the announcement.
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The epic journey towards an agreement ended up in a brisk six-week dash, bursting through the tape with an eye-catching double-digit increase hailed as “record investment and reform”.
An 18.6% lurch stands up impressively against broader NHS funding, but the starting point for that uplift is 2019, and inflation has lurched up harder since then.
C+D asked the pharmacy minister what his message would be to those who will look at this funding deal in real terms, particularly without any NI relief bundled in, and say: ‘This is still not enough’.
“The chancellor took some big decisions back in the Autumn,” he said.
“As a result of those decisions, 23 billion pounds was generated for investment in our NHS, and that’s gone into a range of different areas of the NHS. What we’re seeing today is a part of that process.
“I think the chancellor took choices that needed to be taken for the sake of our public services, the additional investment is a substantial percentage increase, and very substantial, I think, compared to other parts of the of the NHS.
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“This deal will award a 19.7% funding increase and in 25/26 the contract will be worth £3.073 billion, which is £511 million pounds more than in 23/24.”
“I know it’s not perfect by any means, and, of course, the sector is under tremendous financial pressure, but these measures we’re announcing today will go a long way to mitigating those pressures, helping to get the sector back onto an even keel.
“And then, as I say, we’re going to use 25/26 as the year where we really look to build in those long-term reforms. And of course, a very important moment will be the comprehensive spending review that is ongoing.
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“So there’s a lot done, but a lot still to do. We are recognising the financial pressures, but also a 19.7% funding increase will, we hope, go some way, at least, to alleviating those pressures.”
C+D asked if any business rates relief was something he was pushing for to help high street pharmacy operators, outside of funding arrangements.
“I think now we need to deliver this package,” he said. “It will settle. It will begin to gain traction. And I think it will alleviate financial pressures. And we hope that will have a mitigating impact on closures, but we have to wait and see how that goes.”
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“I think there’s another big set of decisions that need to be made about funding for the rest of this Parliament. That will be through the comprehensive spending review that will conclude in June, and there may well be measures around things like business rates. It’s difficult to say at this point in time.”
‘We fight so hard’
The DH said CPE had previously rejected an offer from the last government. C+D asked Janet Morrison whether this deal was improved enough to be worth the wait?
She said talks had only ever progressed to incomplete negotiations. “We were saying, ’This isn’t good enough. Start again.’
“Yes, we had to wait, obviously, quite a considerable amount of time and I think that’s been very tough for businesses. I don’t think that’s been a great situation.
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“But I think the fact that we’ve now had the opportunity to have new ministers listen, understand, and go into bat for us has helped.
“And I think the fact that even if 24/25 hasn’t greatly increased, the fact that the 25/26 is a significant uplift, I think, does help.
“Listen, we fight so hard, we really do put across contractor’s views very strongly. And I think the evidence we’ve presented has been incontrovertible. It’s reinforced by the economic analysis, and ministers couldn’t ignore that.
“So we’ve ended up in a better place than we would have been last year. And I think we’re in a better place because we’ve got something to build on. That’s probably a lot better place to be.”
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