NPA urges protection for pharmacies from any NI increase in the Budget

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NPA urges protection for pharmacies from any NI increase in the Budget

The National Pharmacy Association is urging the Chancellor to protect community pharmacies from the any National Insurance increases that might be announced Wednesday’s budget.

The NPA says that any rise in NI without the support provided to other public service providers would be a “kick in the teeth” for pharmacies and would risk pushing more towards closure.

According to reports, the Treasury plans to reimburse the public sector, including the NHS, for the rise but there is no clarity yet on whether that will extend to the community pharmacy sector.

The NPA points out  that there are over 13,000 community pharmacies in the UK who employ an estimated 100,000 staff, and around 95 per cent of their income is derived from providing NHS services.

If pharmacies are asked to absorb an increase in NI, it would “pile further pressure onto pharmacies already in financial crisis,” says the NPA. Around seven pharmacies a week have closed so far in 2024 due to the impact of a funding freeze coupled with rising business costs.

“Given that the vast majority of a pharmacy 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,” said NPA chief executive Paul Rees.

"Pharmacies are looking to this budget to bring an end to a decade of underfunding and a NI rise without additional support will inevitably lead to more closures and a consequent impact on patients.”

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