Pharmacies warn funding pressures 'unsustainable'

Amandip Kaur said her pharmacy in St Dennis made a loss on half of the medicines it dispenses

A pharmacist has warned more chemists in the South West could be forced to shut because of funding pressures, without urgent action from the government.

The National Pharmacy Association said about 27 had closed in Cornwall and Devon between October 2022 and June this year.

Those in the industry said the cost of up to half of the medicines they have to provide was no longer covered by the amount of NHS funding they received.

The government said it had invested £3.1bn into pharmacies this year and they were central to its 10 year plan for the future of local healthcare.

Amandip Kaur, from Bann's Pharmacies Limited who run the pharmacy in St Dennis, said the current situation was "unsustainable."

She said: "There is no profit margin for the pharmacist and the dispensing fees we get is nothing. It really does not cover the cost of running the pharmacy."

She said "40 to 50%" of the medicines they were purchasing were not covered by the amount the NHS was paying them.

"It really needs to be looked into by the government sooner rather than later," she added.

Owners said it was difficult to cover the running costs of independent pharmacies like in St Dennis

Nick Kaye, a pharmacist in Newquay who represents the National Pharmacy Association said: "Up to 63% of our members may be at risk of closing over the next 12 months.

"People will do loads of things to keep them going - borrow money from family members, re-mortgage, cash in pensions. Which is a really difficult situation to be in and it can be perilous."

He called on the government to stabilise the current situation with the cost of dispensing prescriptions.

"The government's own independent economic review recognized a £2.6bn shortfall in community pharmacy funding so what we really need is a roadmap to make sure that bridge is gapped over the coming years," he added.

'Largest uplift'

A Department of Health and Social Care spokesperson said: "Community pharmacists are at the heart of local healthcare.

"As set out in the 10 Year Health Plan we want them to play a bigger role as we shift care out of hospitals and into the community.

"This year we increased funding to community pharmacies to almost £3.1bn - representing the largest uplift in funding of any part of the NHS for 2025/2026 - providing patients with more services closer to home and freeing up GP appointments."