Political Factors

What are the key drivers of relevance? Since at least 85 per cent of our income relies on one paymaster, whatever the Government does in the NHS, such as amending the regulations controlling the number of pharmacies, impacts on pharmacy. The Government’s actions, and widely quoted preferences, are material political factors to consider.

Is the way community pharmacy has responded in the pandemic likely to change political sentiment towards the sector? The pandemic will clearly have an impact on the way healthcare works in the future, on regulation and economics. All will affect pharmacy.

Economic Factors

Pharmacy is a great example of a public-private partnership. As we’ve seen with the cashflow crisis, the Government may be commissioning dispensing and other services, but pharmacy has to fund them in the interim.

Macroeconomic factors – such as how the Government will mitigate the impact of the impending recession – will affect pharmacy, like any other business. If capital becomes more difficult to access, it will become harder to fund an acquisition. If independents find it difficult to acquire their first pharmacy, will we see more consolidation by chains? Will the large chains be able to continue to sell off their smaller branches, or simply close them?

The economic state of the country determines the rate of interest, the access to capital, taxation and Government spending, as well as the strength of the pound globally. All will have a direct impact on pharmacy, and should make the financial pages a regular touchpoint.