Have your say! Should pharmacies be protected from tax increases?
Pharmacy leaders are sounding the alarm that they may have to reduce their opening hours or shut down entirely if they aren't protected from impending tax increases. Community Pharmacy England (CPE) has calculated that the National Insurance hike could cost chemists a staggering £50 million, while the rise in the national living wage might add another £115 million to £152 million to their expenses.
Have your say! As pharmacies are asked to take more of the strain from overworked GP's under the NHS 10-year plan, should they be protected from tax increases? Comment below, and join in on the conversation.
This financial strain is on top of a 40% real-term funding reduction by the government in England over the past ten years, which has already led to the closure of over 1,500 community pharmacies and reduced operating hours for many others.
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The Mirror is actively campaigning to safeguard family-run chemists and halt further closures that are exacerbating the strain on already overstretched GPs. In a concerted effort, CPE, alongside the National Pharmacy Association (NPA), the Company Chemists' Association (CCA), and the Independent Pharmacies Association (IPA), have reached out to Health Secretary Wes Streeting, cautioning that these fiscal pressures could drive more pharmacies to the brink of insolvency.
Dr Leyla Hannbeck, chief executive of the IPA, has starkly warned that the sector is "hurtling towards a disaster" that could severely undermine any efforts to reform the NHS and transition care into community settings. She emphasised: "The brutal reality is that local pharmacies have to pay their bills. Without the mitigating action we call for, these extra costs will be catastrophic for pharmacies. We need urgent actions before these measures undermine community pharmacies' ability to help with the NHS 10-year plan."
These concerns come in the wake of the Autumn Budget announcements, which have left pharmacies facing an uncertain future.
Pharmacies across Britain are gearing up for their first-ever industrial action, with many set to reduce their opening hours. Members of the National Pharmacy Association (NPA) have decided to 'work to rule' from January, which could lead to a halt in services such as free medicine deliveries, emergency contraception, and support for addiction and smoking cessation.
The move comes as pharmacy leaders wrote a letter to Mr Streeting following warnings from GPs that some practices might have to lay off staff or shut down due to tax changes.
Nick Kaye, chairman of the NPA, commented: "Unlike most businesses pharmacies cannot pass these costs onto their patients and have limited means to absorb them themselves. Pharmacies are ambitious to expand their role and want to work with the Government to deliver the best possible services for their communities and take pressures from other parts of their health system. However, they simply cannot do this until these oppressive funding challenges are met."
Janet Morrison, chief executive of CPE, cautioned that the measures will "wreak havoc on an already fragile community pharmacy network". Meanwhile, Malcolm Harrison, chief executive of the CCA, slammed the proposals as "short-sighted".
Have your say! As pharmacies are asked to take more of the strain from overworked GP's under the NHS 10-year plan, should they be protected from tax increases? Comment below, and join in on the conversation.