Department of Health and Social Care

Preet Kaur Gill Excerpts

Tuesday 30th June 2026 Commons Chamber

[The Parliamentary Under-Secretary of State for Health and Social Care (Preet Kaur Gill)]

I will try to answer all the questions that have been put to me in the short time I have. First, I am grateful for the contributions made by hon. Members, and I thank the Chair of the Health and Social Care Committee, the hon. Member for Oxford West and Abingdon (Layla Moran), for securing this debate.

The UK-US pharmaceuticals arrangement is an important step forward for patient access to innovation and the future of our life sciences sector. This arrangement is fundamentally about patients by ensuring that they can benefit from life-changing medicines as they are developed, rather than see the UK being left behind. We have already seen the benefit from those changes, with NICE approving life-changing treatments such as vorasidenib, a brain cancer drug for patients as young as 12.

The UK’s life sciences sector is one of our greatest national strengths. It saves lives, supports jobs and underpins innovation across our economy. I am proud that thanks to this arrangement, the United Kingdom will be the only country in the world to have secured a commitment to tariff-free access for pharmaceutical exports into the United States.

The Chair of the Committee raised NICE and VPAG changes and rebates. My right hon. Friend the Member for Hayes and Harlington (John McDonnell) also raised a number of issues, as did my hon. Friend the Member for York Central (Rachael Maskell). I will address them now.

The joint Government and industry taskforce has been discussing the options for continuing to evolve our system to ensure that we maximise benefits to patients and the economy. It will make recommendations on pilot programmes as per the UK-US arrangement commitment, and I look forward to providing an update to the Committee on that in due course.

I know there has been concern that these changes undermine NICE’s independence, but that is not the case—let me just be clear about that. NICE will continue to make its recommendations based on evidence, clinical effectiveness and value for money, free from political interference. The change will allow Ministers to set the overall threshold within which NICE operates, not to determine individual decisions. This will preserve NICE’s core role as an independent evaluator, while ensuring that the framework that it uses reflects how we value innovation and patient benefit.

Concerns were also raised about the fact that the UK commitments are larger than the US commitments, but I do not agree. The UK has made policy changes to improve access for patients, while the US has committed to tariff protection for UK exports, which is significant given the scale of that market. The commitments deliver improved patient access in the UK and protection for UK exports.

[Dr Luke Evans]

Will the Minister give way?

[Preet Kaur Gill]

I am trying to get through all these questions as quickly as I can. I will give way to the hon. Gentleman shortly.

On the VPAG changes and rebates, alongside changes to NICE recommendations, the arrangement affects how pricing and repayment mechanisms operate through the voluntary scheme for branded medicines pricing, access and growth. To ensure predictability for the industry going forwards, given the unexpectedly high payment percentage for newer medicines for 2025, the Government have committed to ensuring that future VPAG rates do not exceed 15%. This will support life sciences investment and patient access to medicines while ensuring that the scheme can continue to work for both industry and the NHS, keeping the medicines budget sustainable. I look forward to engaging with the sector on the future of the voluntary scheme, with negotiations due to begin next year informed by the outcomes or interim findings from pilot programmes that were launched as early as this September.

[Dr Evans]

The Minister would save a lot of time simply by publishing the impact assessment, which would answer every one of the questions that she is trying to find the answers to in her folder, so will she—yes or no?

[Preet Kaur Gill]

With respect, I am going to answer the questions that have been put to me by many hon. Members, and I am coming to the impact assessment.

We have been clear that the estimated short-term impact is around £1 billion in England over the spending review period. Costs will increase over time as NICE approves more medicines, but precise long-term costs cannot be modelled as a single figure; they depend on future medicines, NICE approvals, uptake and wider commercial developments.

Members mentioned a number of figures. I do not recognise the £9 billion and £14 billion figures for costs. Spending on innovative medicines increases year on year as new treatments become available, so underlining growth would be expected to continue regardless of this arrangement, and often the figures cited publicly do not take that into account. We are committed to increasing spending on medicines as a proportion of NHS spend, ending the recent decline in the proportion of health spend dedicated to medicines and increasing spending on innovative medicines to 0.6% of GDP.

The Chair of the Science, Innovation and Technology Committee, my hon. Friend the Member for Newcastle upon Tyne Central and West (Dame Chi Onwurah), and my hon. Friend the Member for North West Cambridgeshire (Sam Carling) raised a really important point. Life sciences is one of our most productive sectors. It underpins research and development, clinical trials and high-value manufacturing, and it supports jobs across the country. Over £1 billion in industry investment has already been secured since the announcement of this arrangement in December last year. That includes AstraZeneca’s recent announcement of a £300 million investment into R&D sites at Cambridge and Macclesfield. That demonstrates the confidence that this key sector has in the UK. Maintaining a strong commercial environment helps ensure continued investment and the development of new treatments. This is not separate from patient benefit. It enables the pipeline of the new medicines that NHS patients ultimately rely on.

[Layla Moran]

I am frustrated, because everything the Minister is saying is in the press release. Can she please answer the question? Will the Government release the impact assessment? If they will not, will they at least allow a Select Committee to see it confidentially?

[Madam Deputy Speaker (Ms Nusrat Ghani)]

Order. We are running out of time. Minister, please respond as briefly as you can.

[Preet Kaur Gill]

I recognise the Committee’s request for the impact assessment, but the analysis is scenario-based, contains commercially sensitive assumptions and remains linked to live policy development. Officials should be able to produce confidential advice for Ministers to inform trade and other negotiations, and we will not apologise for maintaining such confidentially where doing so is in the national interest.

[Madam Deputy Speaker]

I call Layla Moran to wind up the debate briefly, in under a minute.