Community pharmacies across the country have entered 2026 “in real economic peril” and urgently need a roadmap to recovery, Community Pharmacy England has warned the Government ahead of upcoming negotiations.

In an uncompromising letter to Pharmacy Minister Stephen Kinnock, CEO Janet Morrison has outlined the sector’s escalating crisis and called on Government to deliver rapid progress towards sustainability in the upcoming Community Pharmacy Contractual Framework (CPCF) negotiations. This must not only stabilise the sector for 2026/27, but must begin a credible, long-term recovery plan.

If this is not achieved, the Department must prepare to have to mitigate negative impacts on patients’ access to services, the NHS, and high streets across England.

“Businesses are losing money and accumulating debt, and operationally, pharmacies are struggling to cope with the ongoing demand from patients and the public. Pharmacy closures are continuing – including in our most deprived areas – and we have also seen a reduction in the number of collective pharmacy opening hours,” the letter states.

“Statutory accounts filed at Companies House continue to show the perilous financial position that many pharmacy companies are in, typically with high levels of loss-making, borrowings and net current liabilities.”

Without Government intervention to help, the direct drop in the accessibility of services is only likely to continue, Janet writes, adding that this could have untold consequences for patients and the public’s access to services, and for wider NHS services. “It would also stall progress on your many positive ambitions for the development of the sector’s role and services in a reformed NHS, which we share,” she warns.

Describing the mounting pressures now impacting community pharmacies, the letter stresses the level of deterioration:

  • Pharmacies are worse off than a year ago, despite the 2025 funding uplift, which has been swallowed by inflation, tax changes and operational pressures.
  • The network faces a structural £2bn+ funding deficit, leaving many businesses losing money every month.
  • Pharmacy opening hours have fallen dramatically, with 75,000 fewer hours per week since mid-2023 and an 88% collapse in late evening provision.
  • Drug Tariff cuts and Category H changes announced last month are another blow, further destabilising medicines supply.
  • Upcoming changes introduced by the 2025 Autumn Budget are expected to add millions in extra costs, including through a National Living Wage rise and higher business rates.

Negotiating priorities

Community Pharmacy England is continuing work to prepare for the upcoming negotiations, and has been clear to Ministers that the upcoming CPCF negotiations must deliver:

  1. A plan to close the funding gap, with proper indexation for activity and inflation;
  2. A roadmap for the future, aligned with 10 Year Health Plan ambitions;
  3. A margin reset and continued write-off of over-delivery;
  4. Progress towards the Community Pharmacist Prescribing Service (in so far as this is achievable for the sector within the funding available); and
  5. Reforms to aid efficiency and reduce red tape.

Community Pharmacy England expects the 2026/27 CPCF negotiations to commence shortly. “We will be looking for clear progress to made in these areas, and believe this is necessary to maintain not only the viability of pharmacy businesses, but the access to medicines and pharmaceutical services that millions of patients, carers and member of the public rely on every day,” Janet wrote.

Janet Morrison, Chief Executive at Community Pharmacy England, said:

“Community pharmacies are entering 2026 in real economic peril. While we very much welcomed the support from Government in 2025 as the first step towards stabilisation, and the sector supports their ambitions for pharmacies to play a significant part in the 10 Year Health Plan, last year’s funding uplift has not undone the decade’s worth of chronic under-funding that pharmacies have faced.

“If a second decisive step towards sustainability is not taken soon, and progress made on the roadmap for the future, the Department can expect to have to manage further changes to the network throughout the coming year. Changes that will have a direct and negative impact on patients and the public’s access to services, as well as putting at risk wider NHS plans and ambitions, impacting on high streets and employment, and harming other NHS services and all those who rely on them.

“There is much at stake. Community pharmacies have so much to offer for patients, their communities and the wider health service, but this will not be deliverable if progress on sustainability is not made and the network is allowed to collapse.”

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