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Pharmacies should be reimbursed for business rates payments in the same way that GPs and dentists are, the National Pharmacy Association (NPA) has recommended.
In a letter sent to chancellor Rachel Reeves on 12 January 2026, the NPA warned that mounting financial pressures risked further pharmacy closures.
Most non-domestic properties — such as shops, offices and pubs — are subject to business rates, which are based on the “rateable value” of a property.
Media attention has recently focused on increased rates facing pubs following an increase in their value and withdrawal of temporary support after the COVID-19 pandemic.
On 14 January 2026, Reeves told BBC Breakfast that “additional support” for pubs would be announced in “the coming days and weeks”.
Pharmacies also face rising business rates when the changes come into force in April 2026.
GP and dental surgeries can claim reimbursement of business rates — up to 100% of the payment if NHS income makes up more than 90% of the practice’s gross income, but pharmacies do not have an equal provision.
Henry Gregg, chief executive of the NPA, said: “Pubs may well deserve support but pharmacies offer more than just beer.
“It would be indefensible if support was provided to pubs but not to pharmacies, who are fundamental to everyone’s health and deserve fair treatment.
“Pharmacies should be treated as an equal partner in the NHS and given the same support with their business rates as GPs and NHS dentists,” he said.
The NPA’s letter to the chancellor states: “Pharmacies continue to face rising business costs and are very much struggling to absorb the rises in employer’s national insurance, national living wage and business rates. A pharmacy’s core business is to provide NHS services, therefore they cannot increase their prices to manage rising business costs, unlike other ordinary high street businesses.
“Furthermore, GP practices have their business rates reimbursed by the NHS, however there is no equivalent provision for pharmacies.”
Janet Morrison, chief executive of Community Pharmacy England, said: “We want to see this unfair disparity ended, with pharmacies either having their costs fully covered, or given the same rates relief as other healthcare providers.”
Speaking in Parliament on 13 January 2026, shadow health minister Luke Evans cited warnings from the Independent Pharmacies Association (IPA) that higher business rates — among other cost pressures — were contributing to pharmacy closures.
On 15 January 2026, Leyla Hannbeck, chief executive of the IPA, told The Pharmaceutical Journal: “As pharmacy funding negotiations approach, the government must properly acknowledge the reality facing the sector and deliver meaningful support. Without it, patients risk losing access to their local pharmacy and the vital care it provides.”
Malcolm Harrison, chief executive of the Company Chemists’ Association, said: “The cost of doing business is already reaching record highs, and additional cost pressures on the pharmacy network, such as an increase to business rates, will only intensify an already extremely challenging operating environment.
“These added cost pressures risk undermining the sustainability of the community pharmacy network and the vital care it provides for patients.”
The next funding settlement must begin to “close the gap between the true cost of delivering NHS pharmaceutical care and what the commissioner is willing to pay”, he added.
A spokesperson for the Treasury told The Pharmaceutical Journal: “With COVID-19 support ending and valuations rising, we have stepped in to cap bills and help businesses, as part of a £4.3bn support package.
“This year, we have also increased funding to community pharmacies to almost £3.1bn — the largest uplift in funding for any part of the NHS across 2024/2025 and 2025/2026.”
The spokesperson confirmed that, where businesses were facing increased payments owing to increases in their valuation, the government was capping increases at an average of 15%.
