Pharmacies: Government Funding

Jim Shannon Excerpts

Wednesday 9th September 2026 Westminster Hall

[Jim Shannon (Strangford) (DUP)]

It is a pleasure to serve under your chairship, Mr Betts. I say a big thank you to the hon. Member for Leicester East (Shivani Raja) for bringing this subject to our attention.

As the DUP’s health spokesperson, I am particularly concerned about the amount of support available to our local pharmacies. As an indication of that, I used the opportunity of the first statement today, on summer health and resilience—the Minister was there, not to answer the question, but to support the Secretary of State—to ask the Secretary of State what discussions she is having with her counterparts in the devolved Administrations, particularly in Northern Ireland, to assure a UK-wide co-ordinated approach to summer resilience.

I also asked what targeted support has been made available for community pharmacy networks, which so often act as the first line of defence when GP surgeries are stretched to capacity as we prepare for the cold and flu season. To be fair to the Secretary of State, she answered my question very well and assured me that discussions are ongoing with the Minister back home in Northern Ireland, and that reassured me. That example underlines the importance of community pharmacies to me, those in my Strangford constituency and every one of us here.

Just last year, the National Pharmacy Association said that it was left with no choice but to recommend that its 6,000 members take collective action for the first time in its history, citing significant new costs and inadequate funding. About 90% of the work carried out by the average community pharmacy is funded by the NHS. This time last year, the National Pharmacy Association issued the stark warning that up to 63% of pharmacies were likely to close in 2026. We are still in 2026, so that threat hangs over all our heads. In response to a survey, 94% of pharmacies stated that the latest funding settlement did not provide stability to their finances. Those figures demonstrate the effect of persistent financial uncertainty on the sector.

[Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)]

The hon. Member mentions the closure of pharmacies, but this is also about the ending of some services. It is sometimes the things that are noticed the least that matter the most once they are gone. For example, people with neurological or mental health conditions rely on Nomads to have the right tablets on the right day, and that really important service is sometimes provided by our pharmacists. Does the hon. Member agree that we do not want the wonderful services that pharmacies provide free of charge to be lost because of financial pressures? They matter too much for the lives of our residents.

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[Jim Shannon]

I thank the hon. Gentleman for giving me a chance to get a wee glass of water. His comments are incredibly important, and he is right to say that those services are almost impossible to bring back once they are lost.

Local pharmacies are under ever-increasing pressure. My particular concern is for small, independent pharmacies in rural constituencies such as my own. These businesses are facing rising costs, increasing workloads and the real risk of insolvency, and that is not to mention the personal toll on local pharmacy owners. The impact on those individuals and their health is sometimes forgotten.

[Shockat Adam]

I thank the hon. Member for making that point about how much stress is put on pharmacists and small business owners. In the last year, there was a 2.3% increase in items reimbursed by the NHS, a 17% increase in service volumes, a 3% increase in inflation, and increases in operating costs such as national insurance and business rates. That all adds to the pressure when pharmacists should be concentrating on providing a vital service to the community.

[Jim Shannon]

The hon. Gentleman is a Leicester City supporter, as I am; we do not have to seek our sorrows at this moment in time, but that is by the way. More importantly, his comments underline the issues for local independent pharmacy owners.

As the hon. Member for West Dorset (Edward Morello) said very clearly, at the heart of this issue are the patients—sometimes we need to remember that. Pharmacy closures are leaving many people, and particularly those in rural areas, with greater difficulty accessing their medication. Those concerns are felt deeply in Northern Ireland. The chief executive of Community Pharmacy Northern Ireland has warned officials that medicine shortages are having a greater impact on Northern Ireland because of systemic funding pressures, with pharmacies being forced to use their own money to bridge the gap in funding. That is the reality for these people, who have consciences, feel compassion and want to care for their patients and customers. The impact is clear, because almost 90% of pharmacies in Northern Ireland were unable to pay their wholesaler bill in January. Think about what that means for a second: that is real pressure. Further demonstrating the pressures is the number of pharmacies operating in Northern Ireland, which at 506 is the lowest ever recorded.

I know that the Minister is a compassionate lady who understands these issues incredibly well, and she will be aware that those figures raise serious concerns about the financial sustainability of our pharmacies and the security of the medicine supply throughout this United Kingdom of Great Britain and Northern Ireland. Our pharmacies need certainty about their funding arrangements. They need to know well in advance what support will be available to them, so that they can plan effectively, manage costs and pay their bills, and not be forced to close.

I have often highlighted the fact that pharmacies’ ability to provide first-line defence in the fight against minor injuries is not used enough. The right hon. Member for Richmond and Northallerton (Rishi Sunak) outlined some of the things that pharmacies do; they are frontline defence. These things are perhaps not seen by everyone, but they are seen by the patients and customers who come in. Every person who gets advice on treatment for warts, headlice, thrush or another ailment from the pharmacy rather than the GP is helping to ensure that GPs are not overwhelmed, and that A&Es are not overwhelmed by people who cannot see their GPs. We perhaps do not always see that, but it is very important.

Pharmacies are a vital cog in the health service, and we must fund them to do the job that they are able to do, yet are prevented from doing. I look to the Minister for that funding and for assurance. The Minister always tries to give us the reassurance we need and to answer the questions that we pose. These are hard times financially, but pharmacies are important for everyone. They produce savings for GPs and the NHS. Let us support them.

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[Gregory Stafford]

I entirely agree with the hon. Gentleman. I think that we can use pharmacists and pharmacies much more creatively and in a manner that would in no way put patient safety at risk. In fact, it would allow patients more choice, and free up GPs and other health professionals to do other parts of their job, so he is right.

Community Pharmacy England’s 2026 pharmacy pressures survey makes the scale of the challenge facing pharmacies clear. Drawing on responses from nearly 4,000 pharmacy owners and staff members, it found that 75% of pharmacies are currently losing money, while only 14% reported being profitable. There is little value in providing additional funding for services without recognising the wider cost and workforce pressures facing the sector: 30% of pharmacies have reduced their opening hours and 76% report an impact on patient care, including longer waits and delays in accessing medicine.

That brings me—briefly—to the issue of business rates and the wider cumulative costs facing pharmacies. A pharmacy might occupy a storefront on a high street, but it is not simply another retailer; it is part of the national health service and is an essential provision in our community. As the hon. Member for Strangford (Jim Shannon) outlined, pharmacies are also part of our national resilience. The Government want pharmacies to take on more responsibility, but they face rising costs that have been caused by the Government.

Pharmacies need to be properly considered within the system and not treated simply as another high street retailer. The same issue applies when we consider national insurance increases, and indeed the national living wage. These cumulative increases are having a real impact. Unlike a high street retailer, a pharmacy has contractual obligations to the NHS and a moral responsibility to its patients, so it cannot just increase prices or stop providing a service like other businesses could. As my hon. Friend the Member for South West Hertfordshire (Mr Mohindra) rightly put it, the Government have to recognise the cumulative impact of these terrible decisions when considering future policy.

[Jim Shannon]

I want to underline a point I made in my speech: some of my community pharmacists back home are using their own money to subsidise their pharmacy and keep the business going—because of their compassion, their understanding and their concern for their customers and patients.

[Gregory Stafford]

The hon. Gentleman is entirely right, and his point goes to the heart of the debate. Pharmacies are businesses that must make a profit, and pharmacists must pay their staff and make sure that they can feed their own families, but they are also public servants. They are people who have decided to work in our national health service to provide for our patients, and the Government should recognise that.

The hon. Member for Leicester South (Shockat Adam) mentioned independent prescribing. If properly supported, it will give patients quicker access to treatment, but it brings greater clinical responsibility, greater governance requirements and greater pressure on pharmacists’ time. Given the limited capacity that we have already talked about, I want to ask the Minister three questions on independent prescribing. Does she believe the sector is ready? Does it have the workforce and the capacity to do it? What additional funding and support will be provided? We also need clarity on the timetable. Pharmacists have trained to prescribe, and they should be able to use that skill.

That brings me to the pharmacy workforce, because none of these reforms—independent prescribing, Pharmacy First or any other idea—will work without a sufficiently large and properly supported workforce. We have heard from right hon. and hon. Members about recruitment and retention pressures, including concerns about the number of full-time equivalent pharmacists. At the same time, the demands placed on existing staff are increasing. We cannot continue to add responsibilities to community pharmacy without considering whether there are enough people to deliver them safely and effectively.

The previous Conservative Government’s NHS long-term workforce plan included an ambition to increase pharmacist training places by 29%, taking them to around 4,300 by ’28-29. That ambition will clearly not be met under this Government, and we are still waiting for the long-promised NHS workforce plan. Despite my asking the then Secretary of State for Health, the right hon. Member for Ealing North (James Murray), in July when the plan was coming out, we still have no answer.

Finally, I will move on to medicines supply. Pharmacies are facing global supply chain disruption and rising medicine costs, with repeated price concessions adding further pressures. They cannot absorb these pressures indefinitely, so what are the Government doing to mitigate the impact of geopolitical disruption on medicine supply and prices, and what assessment has the Department made of the financial burden that these pressures are putting on community pharmacies? They are being felt by pharmacies across my constituency, including Vaughan James and Lalys in Farnham, Chase and Headley pharmacies and Day Lewis in Haslemere, and Grayshott pharmacy, all of which have contacted me about the issues that I have raised.

In conclusion, community pharmacy has a crucial role to play in the future of our NHS. We all want to see care delivered closer to people’s homes. Pharmacy First has shown what can happen when we give pharmacists greater responsibility and trust them to use their expertise, but ambition needs to be matched by capacity. The Government cannot say that community pharmacies are central to the future of neighbourhood healthcare while making it harder for those pharmacies to remain financially sustainable. I urge the Government to recognise the cumulative impacts of their policies on businesses, to look again at the treatment of business rates for community pharmacies, to ensure independent prescribing is properly supported, to protect the supply of medicines, and to provide clarity on when the NHS workforce plan will be published.

The fact is, we cannot ask pharmacies to take on more responsibility and deliver more NHS care while simultaneously making it harder for them to survive. The Conservative party believes that community pharmacy is absolutely central to the future of the NHS. If the Government agree, they must make sure that pharmacies have a future, too.