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National Pharmacy Association chief executive Henry Gregg has renewed his criticism of Labour over its exclusion of pharmacies from business rates relief following its spring statement which he insisted will bring pharmacy owners “little comfort”.

Yesterday’s announcement of the plans by the chancellor Rachel Reeves, during which she claimed borrowing this year would be its lowest in six years while “headroom” against the rule not to borrow to fund spending has risen from £21.7 billion to £23.6 billion, left community pharmacy feeling underwhelmed and disappointed.

Pointing to the Government’s decision last year to support pubs in England and Wales with a 15 per cent discount on business rates in 2026-27 followed by a two-year freeze while at the same time leaving out pharmacies, Gregg (pictured) called on Labour to “urgently use some of their budget headroom to stabilise pharmacy finances”.

“This spring statement will bring little comfort to hard-pressed pharmacies facing sweeping cost increases in April,” he said.

“Pharmacies are essential to their communities but the government has taken decisions to prioritise business rates support for pubs over the health needs of millions of people who use pharmacies every day.

“Pharmacies are not like pubs, cafes or restaurants. They receive 90 per cent of their funding from the NHS and cannot simply increase their prices to absorb an eye watering business rates rise, along with other cost hikes.”

Gregg warned pharmacies will continue to close for good while others will be forced to cut back patient services without Government support. Last month, he said it was “simply outrageous” for Labour to offer business rates relief to pubs and ignore pharmacies. 

Increasing support for small levy on online sales

Meanwhile, Ros Morgan, the chief executive of the Heart of London Business Alliance (HOLBA) which describes itself as a “500-strong multi-sector business membership organisation in the heart of London's West End”, said Reeves’ failure to use the statement to fix the “broken business rates system” was disappointing.

“The bailout already announced for pubs is a temporary sticking plaster solution for one sector,” Morgan said. “Many other businesses, from hotels to restaurants to pharmacies, are facing totally unsustainable increases in bills under the Government's current plans.

“Labour needs to deliver on what it promised before the election, real rates reform to level the playing field between online businesses which pay little or nothing and high street ones that bear the brunt.”

Morgan said there was “increasing support for a small levy on online sales” which could allow for “a cut in over a third in rates for all high street businesses”.