CPE pushes for a ‘roadmap to recovery’ ahead of contract negotiations

Pharmacies across the UK are in ‘real economic peril’, Community Pharmacy England (CPE) has warned the government ahead of upcoming contract negotiations.

In a letter to the pharmacy minister, Stephen Kinnock, CPE chief executive Janet Morrison has called for rapid progress towards sustainability that will not only stabilise the sector for 2026/27 but begin a long-term recovery plan.

‘Businesses are losing money and accumulating debt, and operationally, pharmacies are struggling to cope with the ongoing demand from patients and the public. Pharmacy closures are continuing – including in our most deprived areas – and we have also seen a reduction in the number of collective pharmacy opening hours,’ the letter said.

Related Article: Pharmacists concerned they will see ‘very little’ of contract funding boost

It continued: ‘Statutory accounts filed at Companies House continue to show the perilous financial position that many pharmacy companies are in, typically with high levels of loss-making, borrowings and net current liabilities.’

If the government does not deliver a roadmap to recovery, CPE has said it must prepare to mitigate the negative impact on patients’ access to services and the NHS.

Ms Morrison’s letter stressed the fact that:

• The pharmacy network faces a structural £2bn funding deficit, leaving many businesses losing money every month;
• Pharmacy opening hours have fallen dramatically, with 75,000 fewer hours per week since mid-2023 and an 88% collapse in late evening provision;
• Changes introduced by the 2025 Autumn Budget are expected to add millions in extra costs, including through a National Living Wage rise and higher business rates.

Looking ahead to the upcoming contract negotiations, CPE will be asking for a plan to close the funding gap, a roadmap for the future aligned with the NHS 10-year plan, a margin reset, and progress towards a national community pharmacy prescribing service.

Mr Morrison said: ‘There is much at stake. Community pharmacies have so much to offer for patients, their communities and the wider health service, but this will not be deliverable if progress on sustainability is not made and the network is allowed to collapse.’

Related Article: Expansion of Pharmacy First a ‘key step’ in delivering preventative care

Chief executive of the National Pharmacy Association (NPA), Henry Gregg, said: ‘Consultations on funding for 2026 need to start. Ministers must get round the table and put pharmacies in a financial position to help deliver the transformation of local NHS services they – and we – want to see.

‘We’re clear that anything less than a 8.9% increase will be a real terms cut, jeopardising patient care and risking further closures. We want to see concrete progress towards closing the funding gap and real strides towards new services and independent prescribing – both outside funding for medicines.’

Earlier this month, the NPA set out the grounds for a successful 2026/27 contract deal in England.

It also said that any deal needs to cover cost increases and work towards bridging the funding gap identified by the independent economic analysis of the sector, commissioned by the NHS last year.

Related Article: Beyond the scales: reframing eating disorder recognition in primary care

And it said the settlement should include a commitment to ‘investing in expanding community pharmacy services and prescribing’ and reform of the pharmacy contract to end the ‘uncertainty and unfairness created by funding clawbacks’.

The NPA urged CPE to reject any offer that doesn’t make progress in these key areas.