National Insurance rise would be ‘kick in the teeth’ for pharmacy, NPA warns

The NPA has urged the government to include pharmacies in “any support” given to the NHS after media reports have suggested today’s budget will include a rise in employers’ National Insurance (NI).

Budget increasing
“Contract negotiations must guarantee any funding increase…is not offset by these proposals”

Rumours have been flying around the press about the new budget set to be announced today (October 30) and the National Pharmacy Association (NPA) has called on the government to “protect community pharmacies” from a reported NI rise.

According to a BBC report last week (25 October), Chancellor Rachel Reeves “is set to increase the NI rate for employers to boost funding for public services including the NHS”.

Read more: Pharmacists urged to ‘submit ideas’ for 10-year plan to ‘fix NHS’

But NPA chief executive Paul Rees yesterday said that “a National Insurance rise without additional support would be a real kick in the teeth” to the pharmacy sector, adding that it would “inevitably lead to more closures” and adversely impact patients.

“Given that the vast majority of a pharmacy’s income is dependent on the NHS, it seems only right to include them in any support that is being offered to the public sector to manage this potential increase,” he added.

“Backbone of high streets”

The NPA called on the government to instead use the budget to “reverse cuts” to community pharmacy.

“Not only do pharmacies provide vital care to their patients, they also are a major employer and the backbone of high streets across the UK,” Rees said.

The Independent Pharmacies Association (IPA) also yesterday urged the government to “invest in community pharmacy to save money and save lives”, adding that upcoming “contract negotiations must guarantee that any funding increase…is not offset by these budget proposals”.

Read more: Funding talks to resume after October 30 budget, says CPE

It comes as the Treasury this week (October 28) revealed that the NHS will receive funding to “kickstart” the delivery of two million extra appointments a year in a bid to cut waiting lists across England.

The Chancellor confirmed that the funding will allow the NHS to “deliver an extra 40,000 elective appointments per week”.

The announcement also included:

· £1.5 billion in additional funding for new surgical hubs and scanners

· £70 million to fund new radiotherapy machines

“Lifeblood of Britain”

However, the announcement made no mention of changes to pharmacy funding or primary care more widely.

According to the Chancellor, today’s budget will focus on “investment, investment, investment” to “[fix] the NHS” and “[rebuild] Britain”.

Reeves referred to the NHS as the “lifeblood of Britain” and said that the Treasury is “putting an end to the neglect and underinvestment it has seen”.

Read more: Kinnock: ‘Pharmacies are private businesses’ and closures ‘reflect many factors’

“We will be known as the government that took the NHS from its worst crisis in its history, got it back on its feet again and made it for the bright future ahead,” she said.

And health secretary Wes Streeting added that today’s budget will be “the moment we start to fix” the NHS.

Just last week, the government launched a months-long consultation asking the “entire nation” to help shape plans to “overhaul” the NHS.

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