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Talks have opened between the Government and Community Pharmacy England (CPE) on the sector’s 2026-27 contract, although the full contents of a letter from the Department of Health and Social Care to pharmacy’s negotiator setting out what will be discussed have not been disclosed.

Announcing the start of the talks on Friday, CPE said the discussions will “cover funding, service changes and other arrangements for pharmacies in 2026-27 as well as presenting an opportunity to consider longer term plans for the sector”. CPE’s statement did not provide specifics on what will be discussed.

The Government sent a letter to pharmacy’s negotiator last week “signalling the start of the formal negotiations process”. When asked to reveal in more detail what the letter says and whether it shared its full contents with its committee, CPE told Independent Community Pharmacist: “We don’t provide a running commentary on negotiations as we are tied into confidentiality.”

In its statement last week, CPE promised to update pharmacy owners on the outcomes of the negotiations “as early as possible” and provide “as much detail” as it can.

Its chief executive Janet Morrison insisted the negotiator will “carefully scrutinise the Government’s proposals” against the committee’s “clear negotiating priorities and red lines”.

“We will keep working to mould any reforms into measures that are in the best interests of community pharmacies,” Morrison said.

“Our focus remains on securing a contract that recognises the essential role pharmacies play in primary care, supports those who are struggling, and provides a long term‑ pathway to sustainability and growth.”

It would be good to know what the opening letter says, insists ex-RPS president

However, former Royal Pharmaceutical Society president Ash Soni also called for the contents of the DHSC’s letter to be divulged.

“It would be good to know what the opening letter says and how CPE will respond,” he said in a LinkedIn post.

“This Government while in opposition recognised the pressure on community pharmacy and the impact on communities and made a start on improving the sustainability last year but then implemented policies which impacted much of that gain.

“This year’s budget has added more significant costs to pharmacies as on many other small businesses but currently there is no relief to protect communities and their access to medicines that in many cases are critical to health and wellbeing in those communities.”

NPA: Financial uplift must make progress towards bridging £2.6 billion gap 

National Pharmacy Association chief executive Henry Gregg said his organisation has made it "very clear" to Labour and CPE that it wants "a financial uplift that not only covers costs but also makes progress towards bridging the £2.6 billion gap between funding and the cost of providing NHS care" as highlighted by the independent economic analysis commissioned by NHS England last year.

"Pharmacies can help deliver a transformative expansion of clinical services, incorporating independent prescribing, provided that is based on fresh investment and does not eat into the money needed to sustain a functioning medicines supply service," Gregg said.

"It’s clear to us that the current pharmacy contract is broken and requires fundamental reform. These priorities will help pharmacies implement the Government’s vision for improved community-based care which we strongly support.

"We’re very happy to work with ministers to make their priorities a reality and offer solutions that improve care for patients and help our members pay the bills." 

CCA: Labour must lay foundations for independent prescribing service

Company Chemists’ Association chief executive Malcolm Harrison said the talks “must recognise both community pharmacy’s perilous financial position and transformative potential”.

“They must translate this into sustainable funding to future-proof the sector and to support their own reformative plans for the NHS,” he said.

Urging Labour to fulfil its promise to stabilise community pharmacy and lay the “foundations for an independent prescribing service”, Harrison said: “The 2026-27 framework must now turn those promises into action by beginning to close the funding gap and delivering fair funding.”

However, it is not known if the Government’s letter contains details about funding for a pharmacist prescribing service.

Insisting 2025-26 pharmacy funding is £800 million less in real terms compared with 2015-16, Harrison warned almost 1,500 pharmacies have closed since 2016 and more will follow “without decisive action” in the contract.

“Reduced opening hours are (also) inevitable. Patients will be forced to wait longer for vital medicines or face accessing other already-stretched parts of the NHS,” he said.