NPA: Government’s exclusion of pharmacies from business rates review “disappointing”
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The National Pharmacy Association (NPA) chief executive Henry Gregg has said it is “disappointing" the Government is reviewing pub and hotel business rates valuations in England and Wales but “excluded” community pharmacies.
The Treasury said the review, which was launched today and will be led by independent business rates expert Jerry Schurder, will “look at improving fairness for businesses, working with them to ensure the system is fair and transparent and ensure pubs and hotels can plan better for the future”.
The Treasury is calling for the views of landlords, brewers, hoteliers and business owners as part of the review. Independent Community Pharmacist has asked the Treasury whether pharmacies will be part of its “call for evidence” and if it will support them with business rates.
Schurder will report back to the Treasury by the end of March 2027 ahead of the next revaluation in 2029. The Government said 2026 valuations will not be affected.
Financial secretary to the Treasury James Murray said: “Pubs and hotels are vital for communities and bringing growth to every postcode.”
Last month, Labour reduced business rates for pubs, social clubs and live music venues in England by 20 per cent. That was on top of a 15 per cent cut for pubs and live music venues introduced in April last year.
Gregg warned the NPA’s analysis showed business rates increases had put at least 200 pharmacies at “serious risk of closure”, forcing many pharmacies to consider “relocation or other reductions to services to patients in order to manage these costs”.
“It is disappointing to see pharmacies excluded from the support given to some other sectors,” he said.
“Unlike other business who pay rates, pharmacies receive 90 per cent of their income from the NHS and have no means to offset increases in business rates to patients.
“They deliver a vital health service and should be treated like GP and even NHS dentist colleagues by having their rates reimbursed by the NHS.”
Just before becoming prime minister, Andy Burnham appeared to leave the door open to a business rates exemption or discount and funded tax cuts to help pharmacies cope with staff wage increases.
A spokesperson for Mr Burnham told ICP: “In his own constituency of Makerfield, he’s been outspoken about the need to deliver a pharmacy to Hindley Green, to ensure residents there have access to the care they need. He has been clear that businesses at the heart of our communities deserve more support and that will be the approach he takes into government.”